January Barometer

As January goes so goes the year has been a barometer of what the market will do over the next twelve months. I always remove my rose colored glasses when I hear this being touted by the so called experts in trying to “predict” the market. Now that we have suffered through all the turmoil of the 2010 to 2012 concerns, this month (January) has brought all kinds of better visions. Now please do not take this as bearish because my long-time observation (learned many years ago when selling to early seemed to be common), that bull markets don’t end until the diminishing fuel (money) starts to restrain the acceleration.

The Federal Reserve is still flooding the markets with cash and until we see that slowing the markets will continue to go up. One of the questions I am receiving is if it is too late to get in now we are reaching these nose bleed highs. The way I answer this is what do you consider a high? The market is still undervalued based on forward price to earnings and with rates still historically low, again I ask what do you consider too high? What I find interesting is most of these questions come from the same people who wanted to wait in 2009 because the market was too low.

I learned a long time ago you can lead a horse to water but I can’t make him drink.

Thanks for reading and please send me your comments, I love to hear from you.

Bill

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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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