Luke Tait, Patrick & Shannon Golladay, Cathy & Dave Young, Nathan White and Trudy & Dennis Meister
Paragon Wealth Management was awarded a medal at the 2011 Best of State Awards in Salt Lake City on June 4.
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 investment advisory services.
According to Best of State’s chief executive officer Dana Layton, winners of the 2011 Best of State Awards were rated and judged on their impact in the community, excellence and achievement, and innovation and originality. This year’s judging was hosted by Salt Lake Community College’s Miller Business Resource Center and took place over a period of four full days. An independent judging process, featuring judges with category-specific credentials, has resulted in a confidential tabulation of results by the Gilbert & Steward accounting firm.
Paragon has focused on perfecting their investment strategies for almost 25 years. Dave 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 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 provides exclusive services for clients with at least $200,000 to invest. This allows us to offer the highest possible level of premium management services and develop close, productive and long-term relationships with every client we serve.
We also reserve a select number of spaces for potential clients. This means we’re always in a position to offer you an experience that combines the efficiency of FedEx with the customer care of Nordstrom
As seen in Paragon’s second quarter 2008 print newsletter
Written by Dave Young
photo by Tom Hide
We’ve had several inquires from clients about the “inevitable” impending doom we face.
Opinions differ about the ultimate cause of this approaching economic meltdown.
–Some claim energy prices are causing inflationary pressures that will destroy us.
–Others worry that the economy is too slow and that deflation will be our downfall. Still others feel the budget deficit is creating an unsustainable drain on the economy.
These so-called experts may disagree about the causes, but the unified theme is that something bad is about to happen.
The media–print, television, the Internet–are the main sources of information for the average investor.
We read the newspaper in the morning with our breakfast, maybe check online a couple of times a day to see what’s going on in the world, and turn on the TV when we get home to watch the news. All of these information sources have become intertwined with our daily lives, and we trust that the information they provide is accurate and trustworthy. We have a tendency to assume we’re getting all the information we need to form good opinions about politics, tomorrow’s weather, and of course, our investments.
But it’s important to remember that the media companies are businesses. Their job is to make money, just like every other business. They all exist to make a profit, and their primary souse of revenue is advertising. The larger their audience, the more advertising revenue they can generate.
For investment-oriented media outlets, one of the best ways to attract a larger audience is to create a sense of urgency that taps into the two main drivers of investor psychology: greed and fear.
That’s why the financial media focuses on stories about the next stock poised for huge gains (greed) and warnings of impending disasters (fear).
Articles with headlines like, “The One Stock You Need to Own Right Now,” or Five Stocks to Avoid” should tell you something about the tone the media is trying to establish. You certainly don’t want to miss out on “the next big thing.” Perhaps even more importantly, you don’t want to get caught making a big mistake.
Our observation has been that fear-oriented headlines become more common in shaky market conditions, whereas greed-oriented pieces usually show up more often when things are going well.
This approach isn’t good for investors. When markets decline, the media feeds on investors’ fears by emphasizing risks, because fear in times of uncertainty attracts views and subscribers. Unfortunately, selling after a rapid market decline is almost never a good idea. In other words, the fears fueled by the media after a market decline essentially encourage investors to do the worst possible thing: sell when they should be holding or possibly even buying.
It’s important to understand we are not claiming that commercial media outlets deliberately lie. But, we are saying that commercial financial media outlets have a vested interest in making money, and as a result, they are not always the best source for complete and objective financial information.
So what do we recommend?
–Realize that much of the information you see in the media is not accurate. Often what you see is sensationalized. Why be depressed about how “bad” things are when it isn’t reality.
–Determine how “bad” or “good” things are based on your actual life experience, not what you see in the media.
–Never make investment decisions based on what you see in the press.
–As always, we encourage patience.
At Paragon, we receive data from many independent and reliable sources that do not receive advertising revenue, and then process it through our models which drive our investment process.
If you have any concerns about your investments with us, please call and we will evaluate how your portfolio is invested versus your individual risk tolerance. Feel free to call us at 801-375-2500 if you have any questions or concerns.
Paragon Wealth Management was named one of Wealth Manager’s “Top Dogs”- the Top Advisory Firms in the country.
The rankings were announced today and will be printed in the July/August 2008 issue of Wealth Manager magazine.
To be eligible for the Top Wealth Manager ranking, companies must be registered investment advisers, report more than $50 million in assets under advisement, have predominantly individual clients and offer financial-planning services. They rank them by the size of their average client relationships, not by total assets in order to highlight the firms with the wealthiest clientele. 500 firms are chosen in the United States.
At Paragon Wealth Management, we think it is important to publicize our performance numbers on a monthly basis.
Our two most popular portfolios are a conservative portfolio called Managed Income, and a growth portfolio, which is more aggressive, called Top Flight. Our 2008 numbers are listed below compared to their indexes or benchmarks.
2008 Performance Numbers
Managed IncomeLehman BTop Flight S&P 500
Jan-08 -1.31% 1.68% -5.26% -6.00%
Feb-08 0.01% 0.14% -0.96% -3.25%
March-08 -0.16% 0.34% -3.08% -0.43%
April-08 2.19% -0.21% 6.8% 4.87%
May-08 1.07% -0.73% 3.91% 1.30%
Although, past performance is no guarantee of future results… you may be interested to see our past performance numbers. Paragon’s Track Record
An investor’s actual returns may vary due to timing of withdrawls, contributions and other factors. Past performance is no guarantee of future results. Before investing, contact Paragon to discuss your investment objectives, risk tolerance and fees. Investments in securities involve the risk of loss. The S&P Index is a market-value weighted index comprised of 500 stocks selected for market size, liquidity, and industry group representation. It is not possible to directly invest in this index.
In the past we have written articles about market forecasting. This article was written by Charles Martineau, and it goes right along with our philosophy on marketing forecasting. It was taken with permission fromInvest by Simplicity.
“So where is the stock market going this year Charles?”
– I don’t know.
“Why don’t you know? Aren’t you supposed to be one of the top finance students at your university?”
– What do you mean by top? I have good grades, but that doesn’t mean I know where the market will go this year or next year… actually no one can!
– Do you know anyone who can actually predict where the market is going on a consistent basis?
“Well I thought someone could because of all the news on TV, etc… Those stock specialists sound smart, right?”
– Well they need to sound smart, otherwise they don’t get a pay check! I could give you lots of reasons why the market will go up or down by the end of the year.
“No, what do you think?”
– I still don’t know…
“I am confused!”
– PERFECT! Now you understand the market!
“What do you mean?”
– You are CONFUSED! That’s the whole point… the market is simply a weird non-sense confusing thing!
“I still don’t get it…”
I’ve had this this famous conversation a couple of times with my dad, family, and some school friends.
Everyone needs to realize that no one can predict the market and where it will be by the end of year or the next year or in three to four years.
Hunter Dave Young is also a former world-class magician who toured for more than four years before becoming a successful entrepreneur and then a finacial adviser who owns Paragon Wealth Management in Provo. Dave is Utah Valley Magazine’s new columnist.
Five years ago Dave Young, owner of Paragon Wealth Management, made a goal to harvest a mountain goat that was among the world’s 10 largest. After two failed attempts to get the record-setting goat in Alaska, Dave set his sites on the British Columbia/Yukon border in the fall of 2006.
“Getting to where the world’s largest goats are takes an immense amount of concentration,” says Dave, whose first column in Utah Valley Magazine appears on page 111. “We were scaling 60-to-100-foot cliffs. It’s a mental game.”
After nine days of backpacking, David was finally able to harvest a mountain goat that ranked on the all time “Top 10 in the World” list. He retrieved the goat after it fell more than 2,000 feet into a ravine.
“It took a lot of patience and determination,” David says. “I learned a ton.”
Dave applies his hunting lessons to his very successful investment business.
Hunting the Stock Market
When he’s not hunting world-class trophies to hang in his Provo office, Dave spends his time managing his successful Top Flight Portfolio.
“What I enjoy most is the challenge of getting something that’s hard to get,” Dave says. “Anyone can go on a safari and shoot a zebra. I enjoy hunting leopards. They’re like mountain lions on steroids. They’re quicker, more aggressive and have a bad attitude. If you make eye-contact with a leopard — they’ll jump at you.”
Dave’s mantra of not taking the easy road translates into how he handles clients’ financial futures.
“It takes a great deal of focus and patience to manage money,” Dave says. “You can’t force the market to do what you want.”
While some financial advisers focus on selling their clients value-added services or simply on their personality, Dave has always relied on investing.
“What sets us apart from other financial advisers is that our fundamental roots lie in investing,” he says. “That has been our primary focus for the past 20 years.” The company does not sell any financial products.
And that effort has not gone unnoticed. Since its inception in January 1998 through December 31, 2007, the Paragon Top Flight Portfolio has generated a total return of 417.34 percent, crushing the 77.42 percent the S&P 500 has posted.
“That works out to a compound annual return of 18.03 percent for Top Flight, versus 5.95 percent for the S&P 500,” Dave says. See www.paragonwealth.com for Paragon’s full disclosure.
Most investment advisers are considered successful if they are able to simply beat the S&P 500.
Paragon’s Top Flight portfolio has far outpaced that standard in all economic conditions the past 10 years.
An investor’s actual returns may vary due to timing of withdrawls, contributions and other factors. Past performance is no guarantee of future results. Before investing, contact Paragon to discuss your investment objectives, risk tolerance and fees. Investments in securities involve the risk of loss. The S & P index is a market-value weighted index comprised of 500 stocks for market size, liquidity, and industry group representation. It is not possible to directly invest in this index.
Written by Nate White, CFA, Paragon’s Chief Investment Officer
The stock markets have rallied since mid March when the credit crisis was in full gear and Bear Stearns was collapsing.
Just when it looked like the financial system was nearing collapse the trusty Fed came to the rescue by lowering rates and bailing out Bear Stearns. The long term implications of the Fed’s actions in bailing out an investment bank remain to be seen.
For the moment it looks as though their actions have calmed the storm as credit spreads have narrowed, market volatility has decreased, and equity markets have moved higher.
Now that the Fed has signaled that it could be finished with interest rate cuts the market has started to focus on inflation and what the Fed will do if it worsens.
I don’t need to tell you what has been happening with energy and commodities as it is a constant media topic and you see it first hand while filling up your vehicle and buying groceries. The Fed hoped to calm the credit crisis by lowering rates to get the economy moving but these actions have weakened the dollar further and sent commodity prices soaring.
If the economy continues to slow down then it could put a damper on the run up in commodities. However, if inflation gets worse it will force the Fed to raise rates at some point, but the odds are against it ahead of the elections.
With the current markets being down year to date, many have wondered what to do for the second half of the year.
Sell in May and go away?
There are prospects for the U.S. market to go higher for the second half of the year. The market has had a tendency to rally after May in an election year. The market also tends to have stronger performance following market lows during economic recessions.
There is also a tendency to rally after the Fed’s last rate cut as Wall Street anticipates better economic performance. Summer is usually a quieter time on Wall Street, but that may not be the case this year — for good or ill.
Here is the performance of U. S. markets this year (5/28):
Written by Dave Young, President of Paragon Wealth Management
For some reason, it has always been easier to lose money than it is to make it and keep it.
According to the Utah Division of Securities, during 2007 alone, they filed enforcement action on 63 cases. Within those cases, 727 investors lost over 77 million dollars.
Managing your own investments can be done successfully, but it is not easy. First, it requires a commitment of time researching and tracking your investments. Second, it requires discipline to stick with your strategy through challenging times. Third, and most difficult, it requires you to remove emotion from your investment process.
Most successful people recognize the need for a relationship with an accou ntant and lawyer. Many haven’t yet discovered the benefits of working with a financial adviser.
Based on the variety of investment options and the myriad of people that call themselves financial advisers, it is easy to understand why. Often figuring out who to work with is so confusing that people give up and opt to manage their money themselves.
Studies have shown that most investors would be better off with the help of a financial adviser. Unfortunately, finding the “right” adviser is much more difficult than most people realize. Most investors hire someone they “trust”. However, “trust” is very intangible and difficult to quantify. Also, contrary to popular belief, the size of the firm or familiarity of the brand name does not indicate the quality of the advice provided.
Part of the problem is that titles for financial sales reps are completely unregulated. This means that brokers, annuity salesmen and insurance agents are free to call themselves advisers, financial consultants, financial planners or whatever else they prefer.
To make sure you don’t get stuck with a salesperson when you are really looking for an adviser, make sure you ask yourself these five questions.
Fiduciary advisers have a legal obligation to put your interests ahead of their own. Sales reps selling insurance, mutual funds or other financial products are most likely not fiduciaries. A minority of all financial advisers actually meet the fiduciary requirement. Registered Investment Advisers and Investment Adviser Representatives are fiduciaries.
How many years have they been managing money? Markets are difficult to navigate and constantly changing. Ideally, your adviser has experience investing in both good and bad markets. In the final analysis, you are paying an adviser for their experience.
Legitimate advisers will be able to show you a clear report of what they’ve done for their clients over the years. Showing you the track record of a mutual fund, a hypothetical model, or anything else that they have recently started selling does not count. They need to show you their own track record, which would be a composite of the results of their previous clients’ investments. Any adviser who refuses to show you at least a five year track record of their performance should be crosses off your list.
—Conflict of Interest?
Many commission based salespeople are honest individuals. However, in the financial services industry, the worse the product the higher the commission. The easiest way to avoid those “bad products” and to eliminate potential conflicts of interest is to avoid salespeople who receive commissions. By working only with advisers who are paid through management fees and not commissions you can make sure their interests are aligned with yours.
If there is a surrender charge then that means there was a commission. If there is a commission then you are not dealing with a fiduciary adviser. You should be free to move your money out of an investment if you are dissatisfied. This means you should never own a product with a surrender charge.
As I mentioned at the beginning…
It has always been easier to lose money than it is to make. Implementing these tips will help you keep your money and find a great adviser.