What “Let Markets Work for You” Really Means

Source: Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA) 2014. Index used for comparison: US Equities — S&P 1500 Index; International — S&P 700 Index; Emerging Markets — S&P/IFCI Composite; US Fixed —Gov. Short, Global Fixed — Barclays Global Aggregate. Outperformance is based upon equal weight fund counts. Index returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. Past performance is not an indication of future results. More recent performance may alter these assessments or outcomes.

Source: Standard & Poor’s Indices Versus Active Funds Scorecard (SPIVA) 2014. Index used for comparison: US Equities — S&P 1500 Index; International — S&P 700 Index; Emerging Markets — S&P/IFCI Composite; US Fixed —Gov. Short, Global Fixed — Barclays Global Aggregate. Outperformance is based upon equal weight fund counts. Index returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. Past performance is not an indication of future results. More recent performance may alter these assessments or outcomes.

A similar version of this article appears in the Winter 360 Insights Newsletter.
 
It all begins with markets. But what are capital markets? What functions do they serve in our economy and society?
 
By definition, markets allow investors to provide capital in exchange for the potential creation of wealth. In society, markets play a critical role. Here’s how: Investors provide capital and bear risks. In exchange, they receive compensation for taking on risks. This is how wealth is created. Continue reading

Wisdom from a Golden and Silver Anniversary

Alex Potts, Loring Ward CEO, and Jeff Berg getting ready to light the torch at the Olympic Training Center in Colorado Springs in October 2015.

Alex Potts, Loring Ward CEO, and Jeff Berg getting ready to light the torch at the Olympic Training Center in Colorado Springs in October 2015.

I am thrilled to share some insights from the amazing father/son advisory practice from Minneapolis, MN: Jeff and Tom Berg.
 
2015 was a special year for the 70-year-old Jeff Berg because he celebrated his 50th year in this business. For many of Loring Ward’s 25 years, we’ve been privileged to work with Jeff, one of the original advisors to partner with us.
 
In talking with Jeff about what he’s learned over the course of the past 50 years, I was not surprised to learn that his core values are similar to those at Loring Ward. I’m sure these values are also shared by many of the great advisors out there. Continue reading

Market Corrections Don’t Necessarily Mean Bad Annual Returns

Falling markets can rattle the nerves of even the most experienced investors. While 2015 ended basically where it started, 2016 has seen the worst start to a calendar year in stock market history. Yet the year is young, and stock market pullbacks or corrections are actually far more common than we may think.
 
Looking back over the last 30 years, the S&P 500 has seen an intra-year decline of over 10% on average. Meaning at some point in the year, the stock market fell from a previous high to a low resulting in double digit losses. We’ve seen that in January of this year. Continue reading

2015 Performance Review

Concerns about Greece exiting from the European Union, China’s economic slowdown and volatility in its financial markets, and Puerto Rico’s debt “death spiral” permeated financial markets throughout 2015. These concerns clouded what turned out to be a relatively mild result in 2015 with the MSCI All Country World Index Net Return USD returning -2.36% for the year (but returning 1.27% when quoted in local currencies). Continue reading

Investment Committee Special Briefing — The Market in Perspective

Although down markets are a normal and expected part of the investment process, they are a challenge — especially emotionally.
 
Last week (ending January 8), the S&P 500 dropped 5.91% and the MSCI EAFE (a major International market index) was down 6.14%. And the financial media has been full of dire, in some cases apocalyptic, headlines.
 
Against this backdrop, we think it makes sense to take a step back and take a look at what really has been happening with the global market and
what this may mean for long-term investors. Continue reading

Who is the Stock Market Voting For?

This article is from Loring Ward’s Winter 360 Insights Quarterly Client Newsletter.
 
As we enter into an election year, you are probably hearing predictions about what the stock market will or won’t do based on what happens in November. Don’t believe everything you hear. Let’s look at some facts…
 
Since 1926, Republicans and Democrats have each controlled the White House roughly the same number of years — Democrats 46, Republicans 43. The U.S. stock market (measured by the S&P 500 index) averaged an annual return of 15.3% when a Democratic president was in office compared to 8.6% when a Republican president was in office. Continue reading

Winning the Future of Advice — Insights from Tiburon and Chip Roame

What does the future hold in store for financial services? What trends will have the biggest impact on how to invest and plan? What do financial advisors need to do to win the future of advice?
 
As part of Loring Ward’s recent 2015 National Education Conference, we sat down with one of financial services’ great visionaries and forward thinkers, Chip Roame, Managing Partner, Tiburon Strategic Partners, for his insights on these critical questions.
 
Continue reading