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The Media and Investment Strategy

The media has been reporting that market indexes are hitting a new high, which can make many people feel that their portfolio is not doing as well as "everyone else's”.  We must be very careful when we let the media dictate our investment strategy.  Based on our experience, when this happens, it is important to keep the following things in mind:

1.) The media's first priority is to make a profit by selling advertising, not to make you a profit by making good investment decisions.

2.) Most people only tell you about how much money they have made in their portfolios, not how much they have lost.

3.) Our fist job as a financial advisor is to understand the level of risk that you can take and to do everything we can to preserve your capital.  Our second job is to help you maximize the growth of your portfolio, given the amount of risk you can afford to take.

4.) The Dow Jones Industrial Index or S&P500 index being at a seven year high means that it has had almost a ZERO return in seven years!

5.) The market indices (e.g., The Dow Jones Industrials, S&P500, etc.) are only a small fraction of the overall financial market.

6.) If you try and time the market you WILL LOSE most of the time.

7.) Depending on what time frame you are using, you can draw completely opposite conclusions about the markets.

So what then is an investor to do?  Stick to your plan and good money management tenets such as:

1.) The amount you save and at what frequency are more important than what you invest in.

2.) Do not have your "eggs" in only a few baskets. 

3.) Rebalance your portfolio at fixed periodic intervals no matter what the market is doing.

White House Financial & Settlement Consulting helps families live easier and less stressful lives through the proper management of their financial resources.  We do this by acting as our clients’ trusted advisor providing a personal touch customized to the client’s needs!  Please visit our web site at  or contact us directly for more information!

Please be aware that we do not provide tax or legal advice, and that the information set forth herein was obtained from sources which we believe reliable, but we do not guarantee its accuracy.  Neither the information nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities.  In addition, past performance is no guarantee of future results.  Diversification does not guarantee against loss; it is a method used to help manage risk.

White House Financial & Settlement Consulting, LLC


114 South Main Street • Suite 300 • Chelsea, Michigan 48118 • Phone: (734) 433-1670 • Fax: (734) 433-1671

Securities offered through Sigma Financial Corporation. Member FINRA/SIPC

Fee-based investment advisory services offered through Sigma Planning Corporation, a registered investment advisor


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