Tag Archives: active money management

Why Use An Active Manager?

Posted January 28, 2015 by paragon. tags:Tags: , , ,
Senior investment officers

Because certain indexes have performed well over the past few years, those who promote passive investing are recommending that you follow the current fad and just buy index funds. Passive investing can be useful if it is done right. However, it can be dangerous done blindly. Passive strategies are fully exposed to the whims of the market and can expose investors to significant declines and risks. With this approach you must be aware that you will likely go through a 50% decline at some point.

Making money is difficult. Keeping your money is even harder. There seems to be ten ways to lose money for every one way there is to make it. To complicate things further, managing investments is counterintuitive. Research repeatedly shows that most people invest when they shouldn’t and don’t invest when they should. According to studies by Dalbar, for the 30 year period ending December 2013 the average stock market investor earned only 3.69% compounded versus 11.11% compounded for the broad stock market. Underperformance of 7.42% annually for 30 years is a huge penalty for the “average” investor to pay.

The bottom line is that if you do not have the time, resources, and expertise to manage your money then you are walking into a minefield. Over the years I have seen countless people lose their entire savings to bad investment decisions. Whether it be through leveraged real estate, misguided business ventures, poorly structured annuities, bad stock choices, expensive life insurance, loans to relatives, or even offshore investments, the end result is always the same. They lose their savings and what was once a good situation turns into a bad one.

Your success has brought you money. That money can be a blessing or a curse. If you manage it properly then it can help you simplify and enjoy your life by allowing you to do whatever is most important to you. If you don’t make good money decisions then it can bring you more grief than good.

Everywhere you turn there are different voices telling you how to invest. Financial news channels, magazines, insurance companies, infomercials, self-proclaimed experts, etc. There is no shortage of free advice. The problem is that most free advice is worth about what it costs.

Paragon has been guiding investors for 28 years. We have experienced, survived and thrived in some of the most difficult markets in U.S. history. Those very difficult markets include the Crash of 1987, the Asian Crisis of 1998, the Tech Collapse of 2000 and the Financial Crisis of 2008. We have steadily grown in the face of adversity.

Our clients are our friends. We are their guide. Our money is invested right alongside theirs. Most clients initially choose Paragon because of our stellar investment performance. However, as time goes on they realize that our highest value is actually protecting them from their inexperience and stopping them from making bad investments. It is our mission to help you make the right decisions and find financial peace.

Written by Dave Young, President & Founder of Paragon Wealth Management

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.

 

Buy and Hold VS Active Money Management

Posted January 27, 2011 by admin. tags:Tags: , , , , , , ,

Paragon Wealth Management’s President, Dave Young, discussed his opinions on buy and hold versus active money management on Paragon TV today with Paragon TV’s host, Randall Paul.

“It has often been said that the wisest investor buys a good stock and holds it,” asked Paul. “Dave, how do you feel about that very broad generalization at Paragon?”

Young said buy and hold is a very simplistic way to invest. He continued to say that he has never trusted the markets enough to put his money in a buy and hold strategy. He calls it buy and hold, hope and pray.vv

“The most difficult part is deciding when to sell,” said Young. “That is the cop out with buy and hold because you buy it, hold it and hope it bgall works out.”

Young said in his mind there are two groups of investors. One group claims that active money management is the only way to invest. The other group believes buy and hold is the best.

“We’ve outperformed the buy and hold strategy over the years at Paragon Wealth Management by being active money managers,” said Young. “There were only four years where our growth portfolio underperformed the S&P 500 out of 13. During those 13 years, our average return in our growth portfolio was 13.34 percent net of fees.”

Young said the reason he is not sold on buy and hold is because he is not willing to just blindly suffer the huge draw downs that an investor can with a buy and hold investment strategy. He prefers active management because it gives him a sense that he has more control in his portfolio to possibly mitigate the downside risk.

Watch the video above to learn more. 

Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Any information presented is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. All opinions and estimates constitute the judgement as of the dates indicated and are subject to change without notice. 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.

Health Care Passed… Is it Time to Run for the Hills?

Posted March 26, 2010 by admin. tags:Tags: , , ,
The North Lawn of the White House

photo by francisco diez

Written by Dave Young, President of Paragon

This seems to be the question of the day.

If you listen to the talk shows on the right they are convinced that this bill is going to cause the market to tank. If you listen to the left… they are convinced that health care reform is going to be their greatest accomplishment since Social Security and Medicare. (Never mind that “accomplishment” created a 50 trillion future deficit that has not been funded and will have to be paid by future generations.)

At any rate, forecasts abound.

John Kenneth Galbraith wisely said, “We have two classes of forecasters:  Those who don’t know – and those who don’t know they don’t know. After listening to forecasts from some really smart people over the past 24 years, I’ve concluded that no one has a clue what is going to happen in the future. There are just too many variables. The only thing that is constant is that the markets will do whatever they have to in order to prove the majority of investors wrong.

My take away from the passage of the heath care legislation is that since no one really knows what is in it (including those who passed it) no one really know how it will affect the market.

It’s too big, too complex and there are too many variables. It won’t begin to be implemented until after the 2012 elections (conveniently). By then, it may be repealed and significantly modified if Republicans regain a majority.

Who knows?

My guess is that it won’t have much effect on the market in the near term. In the longer term, the heath care reform should have the same negative effect on the economy as their other efforts; ie. increasing taxes, more regulation and the cost of a stimulus that doesn’t stimulate.

All of their fun and games won’t kill our economy but will definitely slow it down in the long-term.

Our free market economy will grow — albeit slower than normal. All of this “stuff” they keep throwing at us has the same effect as throwing a wet blanket over our economy. It still advances, but at a slower pace than it otherwise would.

Once again, the scenario above supports why we are so passionate about active money management versus passive management. Passive management strategies just sit there and follow the market – for better or for worse. Our active management strategies allow us to adapt and adjust our portfolio to whatever the market gives us to work with. That flexibility has been the key to much of our past success.

What do you think? Feel free to leave comments.

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’s Story

Posted March 18, 2010 by admin. tags:Tags: , ,

The past few months we have been working on some new videos about Paragon Wealth Management to help investors understand who we are and what we are all about. This short video is an introduction our company. It also shares our views on active money management vs. buy and hold. This video was created for our website. If you would like to see steps 1, 2, and 3 mentioned at the end of the video, visit www.paragonwealth.com

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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