This quarter we are focusing on behavioral investing. Each quarter as we focus on a different topic, we will provide you information and opportunities for further discussions.Please check out this ShaveMagazine.com article.
Behavioral psychology has more to do with how a person fares in the stock market (and all other markets) than actually how well the investment itself does. Study after study confirms that investors, as a whole, do significantly worse than the investments.
Why?
Come find out the science behind why the general investing public makes the same mistakes over and over again, and find out how to create new pathways in the brain to overcome making those same very human mistakes.
We are proud to present Dr. David Weule, an expert at Neuro Linguistic Programming, who will delve into the scientific reasons for our self destructive behavior. The event will take place at 6:30 p.m. Thursday June 12th at Shadowridge Country Club in Vista. We will be serving fruit, cheese and wine in addition to desserts and coffee.
We think this is one of the most important events we have showcased up to now. It is part of our ongoing educational “Proactive Wealth Process” for our clients so they can become the best, and hopefully most educated investors they can be.
Please RSVP to Kerry Harmon at Kerry@wwmfinancial.com or call us at 760-692-5190.
Kerry and Jodi of WWM Financial volunteering at a Habitat for Humanity project.
Kerry Harmon and Jodi Mills from WWM Financial participated in Women Build 2014. During the first week of May 2014 in Imperial Beach, women from all over San Diego came together, swinging their hammers, so families can live in safe, decent, affordable homes. San Diego Habitat for Humanity makes home ownership affordable by offering qualified low income families a zero percent mortgage and “sweat equity” to be used as the down payment. Women Build does not exclude men from volunteer efforts, but includes women in the construction process, offering an empowering, unique, fun, and positive environment for women to give back, and to learn a few construction skills along the way! The day also includes a little pampering for our hard working ladies!
PATIENCE & PROCESSBy Vincent StefanoMay 8, 2014
Since the beginning of March investors have sold small-mid capitalization growth stocks and deployed that investment capital into more value-oriented larger capitalization ones. As a result, over this same period smaller stock indices like the Russell Growth and NASDAQ have significantly underperformed the Dow Jones Industrial Average and S&P 500 Index. This rotation and change in psychology has negatively impacted the companies in our New Innovations Portfolio. The majority of stocks in our portfolio continue to develop cutting edge products and services. These stocks continue to show year over year gains in top-line revenue and, the majorities have increased forward revenue guidance. However, as they deploy corporate capital to increase market share overall profitability continues to be pushed forward. This lack of positive earnings per share has resulted in higher valuations currently being shunned by investors.As difficult as this period may seem to small-cap investors, experience has taught us it is critical to remain committed to your investment philosophy and process. This means continuing to focus on and invest in rapidly growing companies with disruptive technologies, products or services. As we have seen over the years, well run companies with robust product offerings and dynamic management teams possess the ability, over a period of time, to generate outsized returns.During periods of stock market rotation sectors and styles can rapidly move in and out of favor. As you recall, the investment process dictates that as stocks break pre-determined levels, stop-losses are initiated and those stocks are sold. In addition, during unfavorable periods like we are witnessing, risk management controls are employed. This means raising additional cash to mute volatility and protect investor capital. Being cautious provides us with an opportunity to buy at more attractive levels and take advantage of our longer term investment horizons.
