The Standoff

With the clock ticking the Cliff is still the most talked about news item. As usual our leaders are playing political “chicken” with America’s financial future. I think based upon past negotiations it will go down to the wire unless the behind closed doors things are working that we don’t know yet. Many investors are selling based on what if’s regarding higher taxes without any true facts. The markets are responding with narrow trading and low volume.

I still remain bullish over the next twelve months due to the long-term potential of this stock market and the economy based on the earnings, alternative investments, and inflation outlook is still super cheap. So the big pools of frustrated cash in the world still recognize that the S&P 500 remains at historical bargain prices. Cheap prices will not support a bull market unless demand is present and this is what is holding the market back.

It is still prudent to stay cautious but that does not mean that cash or bonds are an alternative. Just remember that the market never forgets but you do. Look what happened last year when the same thing we are discussing now and market is still up. The rule of buy low and sell high has never failed me.

I will be travelling to visit with clients for the next two days but if some break in the standoff comes about I will be calling in some comments. Don’t hold your breath on this happening I still think that the 17Th is the magical day.



About billriley

Chief Executive Officer, Chief Compliance Officer A co-founder and shareholder, William Riley is a 33 year industry veteran, who observed, many years ago, that over time institutional investors typically outperform individual investors while accepting less risk. In his role as Chief Executive Officer, Bill works tirelessly to make the wealth management strategies used by the world’s wealthiest families and largest institutions available to our firm’s individual clients. Bill combines fundamental and technical analysis to minimize investment portfolio risk and maximize potential returns. He uses a variety of non-correlated asset classes, including alternative investments, to minimize portfolio volatility and seek absolute returns in down or flat markets. Finally, Bill believes in a comprehensive approach to wealth management that fully coordinates and seamlessly integrates portfolio management, risk management and asset protection, trust, estate, tax and charitable planning. Prior to co-founding Riley Wealth Management ,LLC, Bill held management positions at Merrill Lynch, UBS, Raymond James, Paine Webber and J.C. Bradford. Bill founded Fort Worth branches for Raymond James and J.C. Bradford. Prior to entering the financial services industry, Bill ran his families closely held businesses. Bill’s experience operating family businesses combined with his wealth management experience makes him uniquely qualified to advise entrepreneurs and business owners on a variety of matters including complex and sensitive issues relating to business succession. Bill’s degrees and designations included a Masters Degree in Business Administration (MBA), the Chartered Financial Consultant designation (ChFC), the Chartered Life Underwriter designation (CLU) and the Wealth Management Specialist designation (WMS). A Fort Worth native, Bill is a TCU alum and active in many civic and charitable organizations. Bill and his wife, Marsha, now reside in Colleyville, and they have four grown children and four grandchildren. When he is not working on portfolios or studying financial markets, Bill can be found on the golf courses of Ridglea Country Club.
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