Why use Exchange-Traded Funds (ETFs)?

Posted November 17, 2011 by admin. tags:Tags: , , , ,

Watch this short video to learn more about exchanged-traded funds. Dave Young, Paragon's President, and Nathan White, Paragon's Chief Investment Officer, discussed why they like to use them, why they are popular, the benefits of using them, and the problems with using them. They also cautioned investors when using them.

Disclaimer
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.

Europe Update: Socialism Is Expensive

Posted November 10, 2011 by admin. tags:Tags: , ,
Beautiful fall colors in the mountains

Written by Nathan White, Chief Investment Officer, Paragon Wealth Management

One of the reasons I have been so negative on government debt is that the reward, the interest rate offered, wasn’t enough to compensate for the risk at these low levels.  One of the problems with debt is that when rates are low too much tends to get borrowed.  After all, the financing costs are so cheap when rates are low that it seems like you can afford all sorts of things.  However, the fairy tale comes to an ignominious end the moment rates begin to rise and then the true ramifications and cost of holding significant debt become apparent.  The southern European countries were getting a free ride in the European union by obtaining lower borrowing rates than they otherwise would have been able to obtain.  Because they were able to get artificially low rates they borrowed to the hilt to finance the ever expanding entitlements states.  These socialistic policies encourage even lower levels of productivity because no one is incentivized to work.  The only way to sustain the charade is by borrowing even more.  Socialism is expensive.

With Italian 10 year rates now around 7% I believe you are finally seeing where their rates should truly be to reflect the risk of holding Italian debt.  With high levels of debt to GDP and a bloated inefficient public sector the higher current rate shows the true cost of how expensive their government has become and how it doesn’t take much to make it unsustainable.

With Europe still going through what some call the messy “sausage making process” of actually putting policies in place to deal with the debt crisis the markets will continue their volatile ways.

Let’s just hope that once the European debt crisis comes to whatever end that the same reckoning won’t then be focused on our debt situation here….Are you listening Super Committee???

Disclaimer
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.

Active vs. Passive Money Management

Posted November 3, 2011 by admin. tags:Tags: , , , ,

Watch this short video to listen to Dave Young and Nathan White discuses active vs. passive money management.

In this video you will learn:

-the difference between active vs. passive money management.
-which strategy is doing better right now and which has done better in the past.
-which strategy does better in volatile markets.
-the disadvantages and advantages to each strategy.

Disclaimer
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.

 

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