Category Archives: Paragon Wealth Management

A Season For Giving Back

Posted December 17, 2015 by paragon. tags:Tags: , , ,
Screen Shot 2015-12-16 at 5_opt

Some of you may or may not know a lot about Dave’s wife Cathy. Cathy has a big heart and is willing to go the extra mile to make sure a job gets done right. Together, they have five children and eight grandchildren.

Ten years ago, their son in law, Byron Edwards passed away unexpectedly.  In his memory, Cathy decided to decorate and donate a Christmas tree to the Festival of Trees in Salt Lake.

Then, three years later, their oldest grandson Jack was born with some major medical complications. The doctors only gave him a 10% chance of survival. He was in the intensive care unit at Primary Children’s Hospital for almost four months. The nurses and doctors at Primary Children’s did an excellent job and saved his life. He is now fully recovered and a healthy, happy, seven year old boy.

In memory of Byron and as an expression of their gratitude for what Primary Children’s Hospital did for Jack, every year Cathy teams up with a couple of close friends and decorates a tree. The tree is then donated to the Festival of Trees which raises money for the Primary Children’s Hospital in Salt Lake City. She has found great pleasure in doing this as a way to pay it forward to other families who use the services of Primary Children’s Hospital.

This year, Cathy and her team decorated the tree with snowmen along with a lot of beautiful and fun ornaments. The tree was auctioned off and sold for $5,000.00. She was very happy that she and her team could raise that much for the Primary Children’s Hospital.

Enjoy scrolling through the pictures of the tree! The tree is beautiful!!!!

 

For more information about the Festival of Trees, please visit www.festivaloftreesutah.org.

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.

Market Mayhem

Posted October 28, 2015 by paragon. tags:Tags: , , , ,
wall street_opt

Written By Dave Young, President and Founder of Paragon Wealth Management

This article is from Paragon’s Third Quarter Newsletter.  If you are interested in receiving a free printed copy of Paragon’s Newsletter, please click here

It’s been a difficult three months. From July through September, investors worldwide faced a market with vicious volatility and the worst performance we have seen in four years. As a group, hedge funds posted their worst performances since 2008.

Prior to this, the benchmark S&P 500 had gone 44 months without suffering an official correction, which is defined as a decline of 10% from its high. That streak ended on Aug. 24 when the index was hit with an intraday plunge of 1,100 points.

It is interesting to note that while the S&P 500 index itself declined — 12.4% from its highs — just over half of the stocks that make up that index were actually down more than 20%. This disparity shows the actual breadth of the decline.

Most indexes and asset classes were down for the quarter. The large cap stocks of the S&P 500 were actually a bright spot — only losing -6.9%. The NASDAQ was down -7.3%, U.S. Small caps lost -11.9%.

The international EAFE index lost -9%, while the emerging market index declined -12.1%. The broad-based GSCI commodity index lost -18.5%. Australia was down -15%, Canada -20%, Singapore -19.5%, China -22.7%, and Brazil -33.6%.  Gold mining companies lost 25% and silver miners lost 28%.

Why The Drama?

Last quarter, we were wrapping up our annual Greek drama. This quarter, the worry shifted to China. China’s stock market languished for much of the decade, but with encouragement from government officials, the Shanghai Composite Index went up 152% from June 30, 2014, to its peak on June 12, 2015. It is amazing what impact government meddling can have.

It was a meteoric rise by any standard, with a buying frenzy fueled by margin debt. But the index quickly shed 32% of its value in less than one month, forcing the government to implement additional measures to stem the decline.

China is the world’s second largest economy, and its growth rate has been slowing. Although China officially announced that Q2 GDP expanded by 7.0% in Q2, few believe the official report.

The most immediate impact has been on the emerging market currencies, which are grappling with a China slowdown and a possible Fed rate hike.

In addition, China surprised markets by devaluating its currency on Aug. 11 by about 3%. China’s central bank billed the surprise announcement as a market-oriented reform and a one-time move. Almost everyone else viewed it as an attempt to shore up their sagging economy by increasing their exports.

The Federal Reserve is also being blamed for the sell-off. In late July and early August, markets seemed resigned to the idea the Fed was set to boost rates at its Sept. 17 meeting. When they didn’t raise rates, it led to a circular argument as to whether that was positive or negative for the markets — which ultimately led to more uncertainty.

In my opinion, Greece, China and the Fed were just excuses for a sell off. In reality, we were in the seventh year of a bull market that was overdue for a correction.

The U.S. economy is doing OK — but not great. More importantly, market internals have been deteriorating. Valuations have been hitting the upper end of fair value. Earnings growth has slowed. And the weakness in the energy sector and the stronger dollar have both provided headwinds for the market.

Paragon Portfolios

We ended last quarter’s newsletter by saying, “We cannot see into the future.  However, as of today, (June 30), we are conservatively positioned. Based on our indicators, it would make sense that the market may continue to move sideways or that we could see a 15% to 20% decline from these prices. Our expectation is that this may play out over the next three months.”

As a result of our defensive positioning, we were able to avoid most of the carnage.

Managed Income Portfolio, our conservative portfolio, generates returns three ways.

First, Managed Income captures yield whenever available from government and corporate bonds. With interest rates being held down by the FED, most bond investments haven’t made much sense for some time. The risk-to-reward ratio for bonds is upside down and will stay that way until interest rates reset higher.

Second, Managed Income generates returns from several less risky, equity income oriented asset classes. Those are high-yield bonds, utilities, real estate, convertible and preferred stocks, MLPs, closed-end funds and some equities. The current sell-off temporarily eliminated most of these options because the market was so weak. This will likely change when the equity markets start to recover.

Third, for a very limited portion of the portfolio, Managed Income generates returns from select equity positions. Those opportunities have not been available with the market in a downtrend.

Managed Income is down -3.4% year to date. The portfolio generated a compound annual return of 5.09% from its inception Oct. 1, 2001, through Sept. 30, 2015. Its total return for that period is 100.4%.

Top Flight Portfolio is our flagship growth-oriented portfolio. Considering the difficult quarter we have just been through, we are very pleased with its performance.

This portfolio is driven by two sets of models. The first group is made up of eight primary models, each of which is either on a buy or sell signal. These models measure price momentum, volume, advance decline ratios, sentiment and a host of other market indicators. These models took us to a 50% invested status about four months ago.

The second group of models provides a ranking system, which rates about 100 asset classes. These asset classes give us potential exposure to almost every investment category available. That rotation between asset classes also helped our performance.

Top Flight is only down -0.46% year to date. Its compound annual return is 11.45% from Jan. 1, 1998, through Sept. 30, 2015. Its Total Return for that period is 584.7% versus 174.7% for the S&P 500. (See our track record page for appropriate disclosures.)

Going Forward

The good news is there can be advantageous opportunities created by the sell-off. We will work to capitalize on them as they become available.

When the market stabilizes and the potential reward justifies the risk, we will re-enter our investment positions. We do not attempt to forecast; we only react to what the market is actually doing at the time. We will continue to follow our models.

Successful investing is about playing offense and defense — each at the right time — and keeping a long-term perspective. Patience is key.

We appreciate your confidence in us. Feel free to reach out to us if you have any questions or concerns.

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. 

Best of Utah Valley

Posted May 13, 2015 by paragon. tags:Tags: , , , , ,
Best of Utah Valley

Click here to view the UtahValley Magazine Page 

Click here to view the Utah Valley website list of businesses

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.

The Young Family at the Festival of Trees

Posted December 9, 2014 by admin. tags:Tags: , , ,
The Festival of Trees

Festival of Trees

Each year the Young Family and friends donate a fully decorated tree to Primary Childrens Hospital fundraiser called The Festival of Trees.  There are over 800 trees at the festival, each with its own unique style: ornate, whimsical, creative, humorous, classic, and sentimental. Every penny from the tree auction at the Festival of Trees benefits children at Primary Children’s Hospital.

This year Cathy and team out did themselves, our tree sold for $6500! To see pictures of the amazing tree Click Here.


The tradition of the Festival of Trees started for the Young Family after their first Grandson Jack was born as an expression of gratitude to the doctors and nurses at Primary Childrens Medical Center who saved baby Jacks life.

Jack had some major medical complications and the doctors only gave him a ten percent chance of survival. He was in the intensive care unit at Primary Children’s Hospital for almost four months. The nurses and doctors at Primary Children’s did an excellent job and saved his life. He is now fully recovered and a healthy, happy, six year old boy.

On behalf of all of us at Paragon Wealth Management, we would like to wish you a Merry Christmas and Happy New Year!

Paragon’s Client Social Dinner

Posted September 3, 2014 by admin. tags:Tags: , , , ,
Picture of the 2014 Client Appreciation Dinner

Thank you all for coming to Paragon’s Client Social Dinner! We all had fun visiting and giving away some great prizes! We hope to see you all again next year!


 

Paragon’s Backyard Dinner

Posted September 6, 2013 by admin. tags:
Paragon Team and Clients

Thank you all for coming to Paragon’s Backyard Dinner. We had a great evening visiting and getting to know each other better. Plus we had fun giving out some great prizes!

Hope to see you next year!

Walking the Tightrope

Posted September 24, 2012 by admin. tags:Tags: ,
The Fall hills of Utah

Written by Dave Young, President of Paragon Wealth Management

Investing has always been difficult.  I’ve managed money long enough that I’ve
experienced and survived the Crash of 1987, the Asian Crisis in 1996, the Tech
Wreck from 2000 to 2003 and more recently the Crash of 2008.  One of my fundamental biases has always been
a mistrust of the markets mixed in with slight paranoia.  I believe that mindset is one reason why
Paragon is still managing money after 26 years.

What has been different for the past couple of years is the
length of the cycles that we track.
Historically, markets and sectors trend consistently for six to eighteen
months – or longer.  Much of our
historical outperformance has come from our ability to lock onto those trends
and generate excess performance in our client accounts.

Since 2010, those trends have been much shorter with much
more back and forth motion.  In addition
to the usual factors that effect the markets positively and negatively there
has been a new elephant in the room.

That elephant is Government.
There have been issues created by government actions at home and in
Europe.  Then you add in the effect of hundreds
of new government regulations on the economy, a government spending trillions
of dollars more than it has and a federal reserve stimulating the economy,  i.e. QE1, QE2 and QE3.

I won’t even go into the effects of market uncertainty
created by the upcoming presidential election.
That election will determine whether we move toward an even bigger
government and more regulation or we let
the free market control our economy.
Not to mention the effects of the fiscal cliff we are facing after the
election regardless of who is elected.

Because the government factor is more difficult to measure
and more random, I believe that it has contributed significantly to the shorter
term, back and forth trends.   This
uncertainty has added additional inputs to the way that we manage money and has
at least temporarily, forced us to be more conservative than we would like.

Even when our models are completely bullish we still have to
hold back some cash because of the increased level of uncertainty created by
the government.  It is frustrating to
hold extra cash,  but it does allow us more
flexibility to deal with unknowns that may occur.

There is an old saying that bulls make money, bears make
money but hogs get slaughtered.  Right
now you could call us moderately bullish but definitely not hoggish.

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.

Olympic Investment Advisors

Posted August 9, 2012 by admin. tags:Tags: ,
London Olympics


Written by Dave Young, President of Paragon Wealth Management

When I think of olympians, I think of the best of the best. The best track stars, the best gymnasts, the best swimmers (Michael Phelps), etc. To become the best it takes a lot of training, dedication and motivation.

Most people don’t see what these athletes experience behind the scenes to become olympians. They only see the result of what they’ve become.

This is true with investing. To become an “olympic” investment advisor, it takes a lot of training, dedication,  motivation, and years of experience. A person can invest in the stock market on their own, but usually they won’t get the “olympic” results they are looking for unless they put in an “olympic” type of effort.

That’s why most investors who want “olympic” results hire a professional or an “olympic” advisor to manage their funds. It’s important to find someone who is capable of managing your funds to receive the best performance results. There are many advisors that you can trust and become friends with, but they may not be the best people to manage your life savings.

It is uncommon for an Registered Investment Advisor to post their performance results, especially online. There are many reasons for this, but poor performance is the primary one.

Simply posting our performance numbers is one area that sets us apart from other advisors. Posting our performance numbers “net of all fees” is another way in which we are unique. We post our portfolio performance numbers, net of all fees” on our website each month. That way an investor can see our actual net results generated on an ongoing basis.

Our performance numbers  are on our website and are updated regularly.

Next time you think about investing, and hiring an investment advisor, look at their performance record, net of all fees, to see if it is “olympic” material.

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’S TOP FLIGHT PORTFOLIO INCREASED 410.7% OVER 14 YEARS

Posted March 9, 2012 by admin. tags:Tags: , ,
Park and pond



Paragon Wealth Management’s growth portfolio, Top Flight, increased 410.7 percent from January 1998 through February 2012.

“We are happy to see these numbers over a 14-year time span in our growth portfolio,” said Dave Young, president and founder of Paragon Wealth Management.

Young designed Top Flight in January 1998 to be a dynamic, overall solution for the growth portion of a portfolio. It is specifically for the growth-oriented investor.

“Top Flight’s objective is to generate superior absolute returns while attempting to protect against downside volatility,” said Young. “While we cannot guarantee Top Flight will meet this objective, we manage the portfolio with this goal in mind.”

Top Flight invests primarily in exchange-traded funds (ETFs) that cover a wide range of asset classes, which provides investors’ portfolios with focus and flexibility.

The portfolio is managed using two unique groups of quantitative models. The first group of models is proactive in nature and determines which areas to invest in. The second group is protective in nature and determines how much of the portfolio will be invested and how much will be in cash at any point in time.

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. 

Happy 25th Anniversary!

Posted December 16, 2011 by admin. tags:Tags: , , ,

FOR IMMEDIATE RELEASE

Provo, Utah (Dec. 16, 2011) – Paragon Wealth Management, originally called The Center for Financial Excellence, celebrated 25 years of business this month.

Dave Young, president and founder of Paragon Wealth Management, started The Center for Financial Excellence in 1986 to give investors an opportunity to do more with their money.

“I originally started Paragon to manage money,” said Young. “I sold over a dozen businesses I owned, and wanted to invest the proceeds, but wasn’t able to find an investment advisor who met my needs. I spent the next year researching different investment methods and then started The Center for Financial Excellence.”

The company was registered with the SEC in 1993, and the name was changed to Paragon Capital Management. It was changed to Paragon Wealth Management several years later.

“This is a difficult industry to be in,” said Young. “We are happy to be a successful business this long.”

Paragon’s team celebrated their anniversary this month at their office in Provo, Utah with a cake, balloons and happy employees. Visit Paragon’s YouTube Channel to watch a video of the celebration.

Paragon is known for its growth portfolio called Top Flight. It has generated a total return of 378.74 percent versus 64.76 percent for the S&P 500 from its inception on January 1, 1998 through October 31, 2011. Its compound annual return is 12.06 percent versus 3.7 percent for the S&P 500. (Visit paragonwealth.com to see complete track record and full disclosures).

About Paragon Wealth Management
Paragon Wealth Management is a registered investment advisor (RIA) in Utah that actively manages all types of traditional and retirement accounts such as IRA and 401(K) rollovers, and pensions and trusts. Paragon has received numerous awards such as the Best of State award in Investment Advisory Services in 2011, and the NABCAP Premier Advisor award in 2010. Paragon has also been recognized on several lists such as WealthManagerWeb’s Top Wealth Manager’s list in the U.S. in 2010 and others. Call 800-748-4451 or visit paragonwealth.com for more information.

Paragon cannot guarantee the accuracy of information from other sources. Opinions are as of the dates indicated only. This report is not a solicitation for any security. Past performance is not a guarantee of future results. Investments in securities involve the risk of loss. Do not rely upon this information to predict future investment performance or market conditions. This information is not a substitute for consultation with a competent financial, legal, or tax advisor and should only be used in conjunction with his/her advice.

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