Caveat Emptor – Buyer Beware

Posted May 31, 2012 by admin. tags:Tags: , , ,
Zuckerberg's Facebook

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

There’s a lot of never ending press coverage regarding the recent IPO of Facebook.  Now that is has followed the usual path of most IPO’s in declining after starting to trade on the secondary markets it is comical to watch the blame game circus.  I think it’s a symptom of what ails modern society as a whole.  It’s as if we are all adolescents and don’t want to be responsible for our decisions.  If something goes wrong it must be the fault of someone or something else.   We can’t stand for real estate, stocks, the economy or anything else to go down.  We then take actions to avoid this pain but just end up hurting ourselves even more for the long run.  Investments are long-term, right?   Of course there was a lot of risk in buying a company at a hugely inflated value.  That’s not to say it doesn’t deserve the value or more but just that a lot of things have to go right for the valuation to be justified.  Now that Facebook has gone down over 25% from the offering price people feign to be shocked!  Oh the horror!  Congress should investigate, there outta be a law, evil Wall Street “forced” me to buy it, it’s Zuck’s arrogance.  How about looking in the mirror?

This line of thinking can be applied to almost any crisis, financial or not.  The financial crisis was caused by greedy Wall Street, Bankers, and the government, and had nothing to do with everyone speculating on real estate and being more than happy to take the money that was being handed out.

For decades the Europeans have been voting themselves ever more entitlements and doing less of the productive effort that is required to support them.  They borrowed to cover the gap.  Sooner or later the charade ends and now they’re going through the blame game process and trying to avoid the consequences of their own decisions.  They are going through all sorts of contortions to try and avoid the pain of the inevitable “readjustment” process that must take place.  (how far the U.S. is down this road is of great debate)

Everyone always wants the upside but not the downside.  Does that sound like what actually happens in life?

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.

Paragon Wealth Management Received a 2012 Best of State Medal

Posted May 24, 2012 by admin. tags:Tags: , ,
2012 Paragon Team

Paragon won the Utah Best of State Medal for Investment Advisory Services.

Provo, UT (May 24, 2012) – Paragon Wealth Management  received a medal at the 2012 Best of State Awards at the Salt Palace Convention Center in Salt Lake City on May 22.

Best of State seeks to recognize the people, organizations, and businesses that are achieving, innovating, and improving the quality of life in Utah. The Best of State judging criteria is specifically designed to consider factors that don’t necessarily show up on the income statement. Fifty percent of the possible points are for the overall achievement and excellence in service, products, or performance – including financial performance where applicable. Another 30 percent is for innovation, creativity and differentiation, and the remaining 20 percent is for contributions that make Utah a better place to live. In every category, there are numerous ways to show that a nominee measured up to the Best of State motto, “Excelling and Surpassing All Else.”

Utah’s Best of State presented awards in 10 main categories. Paragon Wealth Management was recognized in the Business Services category. They won the Best of State Medal for the investment advisory services subcategory.

Paragon has won the Best of State medal three times. Paragon received the Best of State medal in 2008 for financial Services and in 2011 for investment advisory services.

“We are honored to receive this award,” said Dave Young, Paragon’s president and founder. “It is a privilege to be recognized by the Best of State.”

The winners of the 2012 Best of State Awards were rated and judged on their impact on the community, excellence and achievement, and innovation and originality. The Best of State judges are selected based on their expertise and credibility in their particular fields. Their names are kept confidential.

“It is a privilege to receive this recognition,” said Nathan White, Paragon’s chief investment officer. “I have over 15 years of experience in the investment services industry, and I am impressed with Paragon’s investment strategies and overall business structure.”

Paragon Wealth Management has focused on perfecting their investment strategies for the past 25 years. Young started what is now called Paragon Wealth Management in 1986 when he sold his 12 franchise businesses and wanted to do more with his money. He spent the next year researching investment methods, and later started The Center for Financial Excellence. The name was changed to Paragon Capital Management and was registered with the Securities Exchange Commission (SEC) in 1993. It has since been changed to Paragon Wealth Management.

Paragon’s growth portfolio, Top Flight, generated a total return of 418.55 percent versus 86.96 percent for the S&P 500 from its inception on December 31, 1997 through first quarter 2012. Its compound annual return is 12.32 percent, versus 4.52 percent for the S&P 500 during that same time period (visit paragonwealth.com to see complete track record and full disclosures).

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.

 

Paragon Advised Investors To Consider Alternatives to Treasury Bills

Posted May 17, 2012 by admin. tags:Tags: , , , ,
Gravel road up the mountain

Provo, Utah- Paragon Wealth Management’s financial advisers encouraged investors to consider alternatives to treasury bills until rates move back up.

“Treasury bills yield nothing,” said Dave Young, president and founder of Paragon Wealth Management. “Bonds and gold could have significant risk at these levels, which are near all-time highs. Both are owned for safety but ironically carry significant downside risk going forward. A home makes some sense because values are low, but it’s hard to get overly excited when a home’s 50-year return is half that of stocks.”

Young said it could be better to follow a proven investment strategy that invests in stocks. He said stocks have gotten the best returns long-term, even though the last 12 years have been extremely difficult in the stock market.

“Stocks are currently the most beat up, out of favor and undervalued of the five asset classes, which makes them even more compelling,” said Young.

Paragon’s wealth managers have been investing in stocks since they opened their doors in 1986. Paragon’s growth portfolio, Top Flight, has generated a total return of 418.55 percent versus 86.96 percent for the S&P 500 from its inception on January 1, 1998 through March 31, 2012. Its compound annual return is 12.32 percent versus 4.52 percent for the S&P 500 during that time period. (Visit www.paragonwealth.com to see complete track record and full disclosures).

“Even the best managers have a tough time staying ahead of the markets,” said Dave Young. “Since the market bottom in March 2009, the legendary Warren Buffett is up only  44 percent versus 80 percent for the S&P 500. Another high profile investor, Jim Cramer of CNBC’s actual track record is surprisingly dismal. If you had followed his advice over the past 10 years, you would have earned only 1.68 percent compounded per year.”

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.

The Search for Yield

Posted May 10, 2012 by admin. tags:Tags: , , ,

Written by Nathan White, Chief Investment Officer, Paragon Wealth Management
Taken from Paragon's 2Qtr 2012 print newsletter.

In an environment where interest rates are at historic lows where does one go for yield?  As the baby boomers start to retire there will be a higher demand for fixed-income type investments of all types.  The effects of the

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