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Investor's Corner NewsletterBy Will W. Woodard, III, CFP® "There is nothing so disastrous as a rational investment policy in an irrational world." Since my last report global equity markets have been relatively listless, despite largely better than expected earning reports from international corporations. The inability of the market to rise on good earnings news is of particular note to market professionals, ever mindful of the slower summer market tone and the occasional summer condition known as "sell in May and go away." In this issue of Investor's Corner:
1. Reader Mail - Dear Will, what is a fiduciary? Thanks, Scott Dear Scott, Thanks for your note. A financial fiduciary is an investment professional who is required to put the interests of his or her clients before his or own. This differs from and is more rigorous than the standard of suitability that most brokerage firms require of their employees. You may remember me periodically mentioning NAPFA, the National Association of Personal Financial Advisors (www.napfa.org), a fee-only planner's organization that I belong to. NAPFA has developed the following Fiduciary Oath for its members: The advisor shall exercise his/her best efforts to act in good faith and in the best interests of the client. The advisor shall provide written disclosure to the client prior to the engagement of the advisor, and thereafter throughout the term of the engagement, of any conflicts of interest, which will or reasonably may compromise the impartiality or independence of the advisor. The advisor, or any part in which the advisor has a financial interest, does not receive any compensation or other remuneration that is contingent on any client's purchase or sale of a financial product. The advisor does not receive a fee or other compensation from another party based on the referral of a client or the client's business. Hope this helps Scott! www3 2. Richard Russell on the Markets - Veteran investment writer and analyst Richard Russell publishes the Dow Theory Letters (www.dowtheoryletters.com). This excerpt is from fellow analyst John Maudlin's (www.frontlinethoughts.com) April 24, 2004 e-letter. Russell is commenting on Alan Greenspan's comments of the previous week. I have left the quote intact in order to more clearly convey Mr. Russell's insight: (Maudlin): Let's look at what the brilliant Richard Russell has to say about Greenspan's remarks this week before we wrap up this topic. (Russell): "Yesterday I noted that almost every sector of the markets that I look at is either toppy or weak. The markets, as I see them, are not saying that inflation has won the game, as per the Greenspan's view. Quite the opposite, I see the markets deflating -- almost all of them. "I think the metals alone are telling the story. Gold down over five bucks this morning(Friday 4/23), silver down over 50 cents in the morning, This, Mr. Greenspan, isn't inflation, this is deflation. "Here's what I think is happening. The debt is out there, tens of billions of debt, $32 trillions of total US debt. At the same time a huge segment of the US consumer population is holding that debt, much of this debt financed at ultra-low rates. Nobody has cash, everybody is thinking and acting as though its uninterrupted inflation as far as the eye can see. 'Everybody' is positioned for inflation, and here's Alan Greenspan hinting that the Fed's next move will be a boost in interest rates, and a boost that may be very close in time. "Remember, the global forces of deflation continue to lurk in the background, and I'm talking about world overproduction accompanied by cut-rate wages out of China and India and much of Asia. "Greenspan's words caught markets that were 'high as a kite' on the idea of inflation. When everybody thinks the same, nobody is thinking. When everybody is on the same side of the market, the 'same side' position becomes dangerous." 3. Charts
4. Worthwhile links: CERTIFIED FINANCIAL PLANNER™ Board of Standards - http://www.cfp.net/default.asp NAPFA, the National Association of Personal Financial Advisors - http://www.napfa.org/ The Financial Planning Association - http://www.fpanet.org/public The FPA's Hampton Roads chapter - http://www.fpahamptonroads.com/ Dare Capital Management & Advisory home page - http://www.darecapital.com/ Whew! That's enough for this issue. Everyone please be safe on the roads this summer! Good Investing, Will W. Woodard, III, CFP® is president of Dare Capital Management & Advisory, a Registered Investment Advisor and fee-only financial planning firm with offices at 2518 S. Croatan Hwy, Suite E, Nags Head, NC 27959. Dare Capital Management & Advisory offers ongoing investment management services and fee-only financial planning. Mr. Woodard, his firm, or his clients may own the investments mentioned herein. Contact Will at (252) 480-0156 or learn more about the firm at Will@darecapital.com The fine print: This newsletter can be reprinted or forwarded--however, it is requested that reprints of any material in this newsletter include credit to Dare Capital Management and Advisory (252)480-0156 and an email link to will@darecapital.com. Thanks for spreading the word! All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Will W. Woodard, III and Dare Capital Management and Advisory, and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. Mr. Woodard, his firm, or his clients may own the investments discussed in this newsletter. Past performance is no guarantee of future returns. The information presented herein and the company's web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future results may vary for many reasons. Copyright 2004 Dare Capital Management and Advisory-all rights reserved. |
