Easy Money Is Over

Over the last four weeks we have been reminded that volatility and corrections still exist. Back in 2009, you could buy anything and it would make money, but now the rules have changed.  The bull market is not over; in fact with this pullback, valuations now are very attractive. Everyone loves volatility when the market goes up but when it goes down fear looms its ugly head. Ebola, ISLE, and oil going down cause some unfounded selling. In fact, I had one client on Wednesday go to cash even though he was only down 2% with the market touching 8%. That was my first indication a bottom was forming.

I have written several times in the past that corrections are part of investing and this most recent was normal very orderly. However, after 40 years of investing I realize that there are people that just don’t belong investing in equities. In the back of my book I have my catch 22 list. The first question is “Do you understand how markets work”. Obviously, even with all my coaching; that client didn’t.


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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