Tag Archives: investment management

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.

 

Should I invest in bonds?

Posted November 4, 2010 by admin. tags:Tags: , , , ,
Deep Thought


photo by shutterstock

Dave Young was interviewed by Sunmee Choi and Mark Ely on Power Trader Radio a few weeks ago. Click on this link to listen to the interview.

http://www.tradecaddie.com/main/general/uploads/PTR091510.mp3

In this one-hour interview, they discussed:

-Should you invest in bonds?

-Will there be a double dip recession?

-Dave’s view on corporate earnings

-The political influence on the market

-How can we alleviate our fears?

-The influence of the media

-Positive factors (reasons to be hopeful)

-And much more!

Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from other sources Paragon believes this 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.

Is the Recession Over? How Should I be Invested Now?

Posted August 14, 2009 by admin. tags:Tags: , , , , ,
The New York Stock Exchange Flags

Written by Dave Young, President of Paragon Wealth Management


photo by buggolo

We have been encouraging investors to become fully invested in the stock market since March of this year. We likened the stock market to “the sale of the century.”

At a time when most investors were selling all of their investments, we told investors to move back to a fully invested position.

We recommended that you as an investor take advantage of this rare, although scary, situation by investing in those areas of the market that have historically performed “best” after a market meltdown. We didn’t just give the typical – but useless – “cautiously optimistic” outlook. We named specific areas of the market you should be invested in.

Since the March 9 low, through July 31, the S&P 500 has gained 46 percent. It has made back its losses from January through mid-March and is now up 10.9 percent year-to-date through July 31. During that same time, our growth portfolio, Top Flight is up 17.2 percent year-to-date.

The reason we are up substantially more than the market is because we invested in those areas that perform best after severe market decline — just like we recommended. If you followed our advice, you were rewarded.

Going forward, the question is, how should an investor be invested?

Our indicators and the models we follow are showing there is a high probability the recession ended in June — although this hasn’t shown up in the press and is not yet mainstream knowledge.

The first and sharpest stage of the market recovery usually occurs right after the initial market plunge and takes about three to four months. We believe stage one occurred between March 9 and June 30. The second stage of recovery occurs after the recession ends, which we believe was around the end of June.

If it is true the recession ended in June, then we now want to be invested in those areas of the market that do best during the second stage, or after a recession ends.

The second stage lasts for about six months. Following the last eleven recessions, the data clearly show that certain areas of the market consistently perform best during stage two.

Typically, bonds perform poorly after recessions and should be avoided. Interest rates get pushed down during the recession, and then, as the economy starts to expand, demand for money increases and interest rates go back up. When interest rates go up, most bonds get hammered and lose money.

Bonds are one of the worst places to be as an economy emerges from a recession.

Unfortunately, many misguided investors have been running to bonds for the past six months, hoping to find safety. If history repeats, they will find the opposite of what they seek.

From a big picture perspective, small cap, growth, commodities and emerging market stocks have performed the best for the six months following the end of the recession. On a sector basis, energy, materials, tech and consumer discretionary stocks performed the best.

On the other hand, in addition to bonds, other sectors that usually perform poorly after a recession ends — and should be avoided — include consumer staples, health care and telecommunication stocks.

This difficult market highlights why “active” investment management is so important.

If market dynamics always stayed the same, then a simple buy-and-hold approach would most likely work well for investors. Because market dynamics are constantly changing and evolving, we believe the best investment approach is one that actively adjusts, moves and changes based on market conditions.

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.   

Free Lunch Seminar- Stock Market & Economy Update

Posted January 30, 2009 by admin. tags:Tags: , , ,
Paragon Wealth Management Small Logo 2008

For those of you who live near Provo, Utah, you might be interested in attending one of these lunch seminars.

 

Attend this free seminar to learn more about what is happening with the economy and stock market.

Recently we have experienced one of the sharpest declines in stock market history. It has taken stocks to their lowest prices in 11 years. During the past 22 years that we have managed investments, we have never seen stocks at such bargain basement valuations.

Most investors are worried about their investments, and we’d like to discuss what is happening, and what you can do moving forward. These are educational workshops.

Each meeting is an hour, and we will serve a light lunch. We plan to host meetings each month. RSVP to Shannon at shannon at paragonwealth.com if you are interested in attending one of these meetings.

Hosted by Paragon Wealth Management, a fee-only (no commission) wealth management firm specializing in investment management for individuals and businesses.

WHERE:

Paragon Wealth Management

3651 N. 100 E., Suite 275

Provo, UT  84604

TIME:

12:30-1:30 p.m.

WHEN:

Wednesday, Feb. 11

Tuesday, March 3

Thursday, March 19

Wednesday, April 8

R.S.V.P.

Shannon Golladay

801-375-2500

shannon@paragonwealth.com

 

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