Michael BooneIn our experience, people tend to look at the stock market in one of two ways.  Most people see the market like this, and they are absolutely correct ………….

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Year to Year Volatility


Other people, like us, also see the market like this:


Cumulative Return

This is the exact same data set shown in two different ways.  The implication as to which way you see the markets has everything to do with your success as an investor.  If your perception is primarily the first chart, you will not invest because annual returns are chaotic and random.  However, if you also perceive the second chart, knowing that despite the apparent randomness and certain volatility the S&P500 has turned a $1,000 investment in 1871 to a $100,000,000 investment today.  If you understand this, you may be willing to invest a portion of your funds anyway.

We don’t think all of a person’s money should be in any one investment, including their house, the stock market, or even their bank account.  We believe that investing in real estate, bonds, foreign securities and even commodities can make sense for most investors.  We firmly believe that a portion of most investor’s money should be in financial assets, including stocks.  We also believe it is best to invest whenever you can, but especially when prices have fallen.  We also believe that you should be more afraid of high prices than low prices and that if you follow the herd where it always goes, you are likely to get slaughtered.  We believe in professional management and portfolios designed from the ground up to help meet our clients particular needs and risk tolerance.





Investing in alternative investments may not be suitable for all investors and involve special risks such as risks associated with leveraging the investment, potential adverse market forces, regulatory changes, potential illiquidity. There is no assurance that the investment objective will be attained. Investing in real estate/REITs involves special risks such as potential illiquidity and may not be suitable for all investors. There is no assurance that the investment objectives of this program will be attained. Small-cap stocks may be subject to a higher degree of risk than more established companies’ securities. The illiquidity of the small-cap market may adversely affect the value of these investments. Investing in mutual funds involve risk, including possible loss of principal. Investments in specialized industry sectors have additional risks, which are outlined in the prospectus. International investing involves special risks such as currency fl ucuation and political instability and may not be suitable for all investors.

The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific  investment advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
Past performance is not indicative of future results. The information set forth above has been obtained from third party sources believed to be reliable, but LPL Financial does not represent or warrant its accuracy or completeness and is not responsible for losses or damages arising out of errors, omissions or changes to market factors. This material does not purport to contain all of the information that an interested party may desire and in fact, may provide only a limited view of a particular market.