May 15, 2015
It is with a heavy heart that I announce my departure from Paragon Wealth Management. I have thoroughly enjoyed my time with Paragon.
During my tenure at Paragon Wealth Management, we have enjoyed many successes and achieved numerous milestones. I have garnered friendships within the organization that will last a lifetime. One of the highlights that has resonated with me here at Paragon is having the opportunity to work with the Live Your Dream Foundation and having a viable role in helping single mothers obtain an education.
I have also enjoyed working with Katie Bunnell, the Board Members and volunteers on the Raft and Run event which produced $50,000 in scholarship funds to help those in need of an education. I will continue to be involved as an Advisory Board Member on the Live Your Dream Foundation and look forward to upcoming events such as the upcoming annual Live Your Dream Foundation Golf Tournament in June 16th and the Raft and Run on Pioneer Day.
I have thoroughly been blessed to have been a part of such a wonderful team here at Paragon for the last 2 ½ years. I have gained valuable experience during my tenure at Paragon. I look forward to the next chapter in my career and will miss the smiling faces that greeted me here each day.
I wish the team at Paragon Wealth Management continued success!
David Kyle Herring
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You voted for your faves and we heard your raves. Now here’s the cream of the crop, the top of the heap and (according to ya’ll) the best in the west.
Noteworthy changes are affecting the economy and markets. The stronger dollar and the sharp drop in energy prices are impacting economic growth, corporate profits, and investment strategies.
DOLLARS AND CHANGE
The rising dollar hurts U.S. companies dependent on foreign earnings or on rising commodity prices. After a long streak of healthy employment gains, the jobs report on April 3 came in surprisingly weak — at about half of what was expected. Credit conditions — as monitored by the NACM’s Credit Managers’ Index — have experienced widespread deterioration with the first back-to-back declines since 2008. While we are not forecasting a recession, the near-term risks to the economy and markets have increased. For the first time since the financial crisis, S&P 500 profits over the next two quarters are set to drop on a year-over-year basis. In fact, many analysts are now estimating flat or slightly negative earnings growth for the year. With market valuations around the high side (at 19 times trailing earnings), it can be harder for equities to advance without earnings growth.
RATES ARE LOW AND SLOW
Another headwind with regards to earnings and market valuations is the coming interest rate increases — or “normalization” of monetary policy. The Fed still seems to be looking for any reason to make this process slow and gradual. Forecasts for the first rate increase have now been pushed to September from June, and the path of rate increases looks to be much shallower than previously estimated. As I’ve said in the past, the Fed will be very reticent to normalize policy, which could pose significant risks down the road at the expense of marginal gains in the present. Still, a slight increase in rates can make it harder for valuations to expand from already elevated levels. Adjustments to higher rates are actually healthy, as it lets the market and fundamentals align back together, ensuring a healthier market long term. The stronger dollar effectively tightens monetary policy and has thus given the Fed a pass on raising rates in the next few months. Stocks are cheap relative to bonds, but at these low yields that doesn’t mean as much.
THE VULNERABILITY FACTOR
On the sentiment side, the indicators are slightly negative. Margin debt is at a record high, and hedge fund managers are holding the highest positions in U.S. stocks since the financial crisis. We have also seen deterioration in market breadth back into a neutral zone, which could indicate that the market advance is a bit tired. These factors, along with the aforementioned risks, make equities look vulnerable, as many of these elements may not be fully priced into the market. This increases the likelihood of a long overdue correction in stocks. The last major correction was in the fall of 2011.
GROWING PAINS AND GAINS
Any correction would be an opportunity within the context of a continuing bull market. A continuation of weaker economic indicators would make us rethink this assumption, but for now the evidence indicates that any slowdown would be temporary. Even though there are some near-term headwinds, the economy is still set to grow and can benefit overall from lower energy prices and still low interest rates. The shape of the yield curve, which has been an effective predictor of stock market declines and recessions, is still moderately bullish. While the dollar could continue to strengthen, the majority of the move has already occurred. Once the markets and economy adjust, we should see moderate economic growth continue.
Now is a time for good risk management practices that will enable flexibility in upcoming opportunities. Managed Income has been in protection mode for some time now, and our current positioning will pay off as the year progresses. Many assets in the yield arena are becoming increasingly stretched and now contain too much risk. At this point, it is more advantageous to wait for better prices before owning many of these “safe” assets. Not being in Treasuries has been a drag on performance for Managed Income. Volatility has dramatically increased at these low rate levels and ahead of the projected rate increases by the Fed. While helping to protect the portfolio against an equity or bond market drop, our small hedge positions have also been a drag on performance. However, our reasons for holding the hedges have not changed. The price paid to buy this insurance is still worth the cost.
PROCEED WITH CAUTION
Our current strategy is caution. We have been repositioning our portfolios to reflect a more cautious approach and to take advantage of better, developing opportunities. The energy sector is a tug of war between short-term oversupply and a balancing out that is just over the horizon (as U.S. production finally starts to decline). Oil price is still a question of how long rather than how low — it’s a question of which companies will be able to endure. Current estimates are all over the map, and it will take time for the market to sort it out. New lows for oil prices would be an opportunity to add to investments in this area. Conversely, we also like areas such as consumer discretionary and retail that benefit from lower energy prices and a stronger dollar.
With regards to emerging markets, we are opportunistic. The headwinds faced by a stronger dollar could subside but still remain a stumbling block for many countries. Overall, emerging Asia still looks relatively better than other emerging markets. But we view the better prospects such as China and India as trading plays currently. Europe could get a boost from the ECB’s actions and economic growth could finally be turning up. The fly in the proverbial European ointment is still Greece. It now looks inevitable that Greece will have to leave the Euro. They simply have too much debt and not enough productivity to pay it off — no matter how much the debt gets restructured. It has been widely reported that they will run out of money (again!) and whenever the Germans decide to cut their losses the break will occur. When that happens, it will cause market disruption and uncertainty due to possible contagion effects. This would present a buying opportunity in the Euro and European equities. Again, retaining flexibility in portfolios is crucial to taking advantage of the volatility that could arise as the market adjusts to this new environment.
Written by Nathan White, Chief Investment Officer
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.
For Immediate Release:
Paragon Wealth Management, a national leader in the investment and wealth management field is proud to have been awarded the 2015 Best of State Award for Investment Advisory Services.
This is the Sixth year that Paragon has been awarded this prestigious award, that recognizes their commitment to financial excellence and the community they provide for in Utah. Paragon also received the award in 2008, 2011, 2012, 2013, 2014 and now 2015.
“This is has been an exciting year for us,” says David Young of Paragon Wealth Management. “It’s wonderful to be recognized for all of our hard work and dedication to our clients.”
The company has been focused on the best customer service in helping their clientele with 401K, asset and wealth management, as well as investment services.
The Dave Young received the Best of State Award for the Paragon Team at Best of State Gala at the Salt Palace Convention Center on May 8th in Salt Lake City.
Recognized as one of America’s 50 fastest-growing RIA Firms, Paragon follows the high standards of fiduciary responsibility. With over 28 years of experience within the investment and wealth management field and now 6 Best of State awards, Paragon is being recognized as Utah’s premier advisory firm.
To find out more about Paragon Wealth Management: “Like” them on Facebook or please visit
for Paragon Wealth Management
About Paragon Wealth Management:
Paragon Wealth Management is registered investment advisor (RIA) located in Provo, Utah. Established in 1986 by Dave Young, the company gives investors a smarter way to invest their money, develop sound investment strategies and achieve financial goals. Paragon was created to provide a more active and personalized alternative to the traditional buy, hold and hope approach to wealth management. Today, after over 26 years of refining proprietary quantitative financial models and building a trusted world-class organization, Paragon offers its clients across the U.S. a unique blend of proactive and proven money management techniques, extraordinary personalized service and a proven track record.
Judging criteria for the Best of State Award Reference: http://www.bestofstate.org
There are three basic judging criteria used by the judges, and each has a different weight.
The Best of State judging process involves a 100-point system. The 100 points are allotted in the three following areas:
50 points are possible regarding the overall excellence, superiority and quality of a nominee’s products, services or performance.
30 points are possible regarding the creativity which nominees display to differentiate themselves from their competition.
20 points are possible regarding the nominee’s accomplishments to improve the quality of life in their community and state, and their efforts to make the world a better place.
Disclosure: 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.
On Saturday, May 9th the Paragon team attended the Best of State Awards Gala to recieve their 6th Best Of State Medal. Paragon received the Best of State Award for “Investment Advisory Services.” Utah’s Best of State presented awards in 10 main categories. Paragon Wealth Management was recognized in the Business Services category.
According to Best of State Chief Executive Officer Dana Layton, winners of the Best of State Awards have been rated and judged on their impact on the community, excellence and achievement, and innovation and originality.
An independent judging process, featuring judges with category specific credentials, has resulted in a confidential tabulation of results by the Gilbert & Steward accounting firm.
Click here for details about Best of State Criteria and Process.
FOR IMMEDIATE RELEASE
2015 Best of State Winner Paragon Wealth Management Receives the Wealth Management Advisor’s with Heart Award
Provo, Utah (May 4, 2015) Paragon Wealth Management announced today that Founder and CEO, Dave Young has been chosen as a recipient of the 2015 Advisors with Heart Award from WealthManagement.com. The 10 recipients were chosen from nearly 150 nominations. Wealth Management’s 35th annual Advisors with Heart Award honors advisors around the nation who put sweat equity into philanthropic and charitable causes. These Financial Advisors go beyond just writing a check or serving on the board of an organization. Each one brings his or her unique skill set to the table when serving others. “It’s all about empowering single moms and giving them hope. We do it because it’s the right thing to do.” said Young.
Dave Young launched Paragon Wealth Management in 1986 because he wanted to spend more time with his family. He also realized that investors needed better and more effective ways to invest their money if they wanted to be able to reach their financial goals. He turned a personal knack for investing (and some proprietary momentum trading models) into a financial advisory firm, Paragon Wealth Management, and now oversees some $100 million for about 150 clients.
In 2010 Dave’s son in-law unexpectedly passed away, leaving behind his daughter Katie and his newborn granddaughter. After watching his daughter go through the struggles of single parenthood combined with the financial strain of trying to go back to school to earn her degree, Dave knew he needed to do something. Together with his daughter Katie, they founded the Live Your Dream Foundation. It’s sole purpose is to help single mothers obtain a college education to better their futures, support themselves and their families.
Each year the foundation hosts their Pioneer Day “Raft and Run” event where participants paddle five miles down the Provo River, followed by a five-kilometer run. “It’s a unique event,” Young says, and other organizations have approached him about replicating it. Some 300 people participated, and the foundation has raised over $50,000 to fund dozens of scholarships for single mothers with little means to help themselves.
The next goal for the Live Your Dream Foundation is creating an intuitive website where single moms can easily find all the resources they need to put their lives back on track. “These women need someplace they can go where they can say, ‘Yes, I can see a path to this. I can see how to make this happen.” Commented Young.
About Paragon Wealth Management:
Paragon Wealth Management is registered investment advisor (RIA) located in Provo, Utah. Established in 1986 by Dave Young, the company gives investors a smarter way to invest their money, develop sound investment strategies and achieve financial goals. Paragon was created to provide a more active and personalized alternative to the traditional buy, hold and hope approach to wealth management. Today, after over 28 years of refining proprietary quantitative financial models and building a trusted world-class organization, Paragon offers its clients across the U.S. a unique blend of proactive and proven money management techniques, extraordinary personalized service and a proven track record. For more information about Paragon Wealth Management, please visit: www.paragonwealth.com.
Media Contact: Cindie Quintana 801.879.6136
This year, we pored over nearly 150 nominations for REP.’s 35th annual Advisors with Heart Awards, which honors advisors who put sweat equity into philanthropic and charitable causes. There were so many outstanding advisors in the bunch that it was hard to narrow the list down to just 10, but by April 6, we made our final selections.
These FAs go beyond just writing a check or serving on the board of an organization. And each one brings his or her unique skill set to the table when serving others. Take Russell Redenbaugh of Kairos Capital Advisors. Blinded at the age of 16, he used his skill as a juijitsu champion to launch a self-defense program for young children, among other projects. Edward Jones advisor Ryan Harman learned to fly-fish when he was a teenager in the mountains of West Virginia, and now he teaches fly-fishing to disabled veterans as part of a rehabilitation program.
“I have a chance to share something that’s been really important in my life with some truly deserving soldiers,” Harman says.
Click here to check out their stories.
Click here to see the article on WealthManagement.com.
When Provo-based advisor David Young graduated from college, he made his living as a touring magician. He did 350 shows over four years and was easily on the road two months at a time. When he came home for his daughter’s first birthday party, she didn’t recognize his face. “I thought it was time to do something different,” he said.
He put away the magic and brought an entrepreneurial zeal to businesses closer to home: franchises, an interior design store, even a llama farm. But as those expanded across state lines, so again did his prolonged absences. He sold everything in 1986 and turned a personal knack for investing (and some proprietary momentum trading models) into a financial advisory firm, Paragon Wealth Management, which now oversees some $100 million for about 150 clients.
Family is clearly important to Young, so when his son-in-law died suddenly from a brain aneurysm, leaving his 25-year-old daughter Katie alone with a newborn, he was sensitive to the practical struggles she faced, beyond grieving.
Katie knew she’d have to complete her education. She made it work, but it was a struggle, even for someone who had the resources.
There were child care issues to navigate. How do you find someone to watch a baby when you’re at school or at work? How do you track down scholarships or assistance when you have to work to pay for child care? “If you work, you don’t qualify for the grants. But you needed to work to survive. You help your family, you don’t qualify for the grants. That’s circular,” Young says.
Katie earned a bachelor’s degree in business in two and a half years, and she and Young decided to make young single mothers the focus of their philanthropic work.
In 2010 they started the Live Your Dream foundation, and they funded it with a series of runs that soon evolved into larger “raft and runs”—participants paddle five miles down the Provo River, followed by a five-kilometer run. “It’s a unique event,” Young says, and other organizations have approached him about replicating it. Some 300 people participated, and the foundation has raised over $50,000 to fund dozens of scholarships for single mothers with little means to help themselves.
Young also facilitated a client’s gift to construct a new, $2 million child care facility at Utah Valley University for single mothers. Its students “pay” for the care by volunteering to watch each other’s children.
Next steps: A clean, intuitive website where single moms can easily find all the resources they need to put their lives back on track. “These women need someplace they can go where they can say, ‘Yes, I can see a path to this. I can see how to make this happen.’”