For us this week, it’s all about the P’s. We’re not talking about Posey, Pence, Panic and Pagan. It’s “practice what you preach”. For months we’ve been preaching to you that interest rates were heading higher. We’ve been preaching that we don’t believe the Greek tragedy will have a material impact on your portfolios. We’ve been preaching that the U.S.Dollar strength should continue, making European vacations a bargain this summer. However, we don’t get paid to preach. We get paid to perform. Taking gains is never a bad idea. To us, Performance comes in 3 sizes Large – referring to capital gains. Medium – referring to growth and income. Small – referring to predictable streams of income.
With 2015 halfway in the books, our 3-sized strategy is performing practically perfect in every way; working in tandem. We have anticipated a peculiar Market environment heading into Summer, with many potential potent productions possibly penetrating this 6-year bull run. Try saying that 3 times. You get the point.
We have been laser focused on taking profits when we see them, because many of our investments have reached their price targets prematurely. For this parade of P’s to continue, it is necessary, from our perspective, for stocks and bonds to prove their legitimate prices. It’s known as a correction, not a crash. Corrections are healthy and provide an opportunity to purchase more at lower levels. So, while many media outlets are preaching the bad “P” i.e. Panic, we don’t see it that way. Why? Because we are prepared. There’s too much to like about the current financial environment while innovators continue to generate profits at a fast pace. We see correction, not the end to the current Bull Market.
We are hard at work producing our Summer Newsletter, which proposes our action plan for the rest of the year. It will hit your inbox and be posted to our website at month’s end.
Have a pleasant weekend.