Lesson Learned

Last Wednesday the market went through one of the most volatile days since 2008. Many people decided to go to cash and pull their investments from the market and hide. I continually preach against trying to time the market (going to cash when the news gets scary).  However, I have come to the sad conclusion that it will always exist.

Since last Wednesday the S&P is up 6% and now trying to take out the all-time highs. Selling at the bottom is the biggest mistake I see investors make and it is what I always hear that causes people to stay out of the market. Volatility is back so we must adjust to it. Investors love volatility on the up side but run for the hills on the down side. I have never made money buying at the top but most individual investors will always try. Remember, it is not the portfolio 90% of the time that causes failure but the investors mentioned earlier.

Once the Federal Reserve finishes their meeting this afternoon we will probably see another round of volatility. I will admit this is concerning but we need to take advantage of the decision and adjust accordingly. My observation is there are a lot more positive results from this decision than negatives.



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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