I saw a pretty good cartoon last week. It was a picture of an old investment advisor behind his desk with the phone to his ear saying “We’re expecting stocks to rally, but we don’t know which ones or when”.

 

It’s a little funny because that’s really the old mindset of the financial industry. For decades, people have been entrusting their wealth to investment advisors who never see a recession coming and never know when a rebound is imminent. Of course, that doesn’t stop anyone from taking credit in the good times and blaming the market in the bad times… as is the game.

 

I have been working hard to demonstrate there is a better way to invest than the passive style many advisors try to masquerade as active management. By communicating my thoughts each week and discussing my portfolio positing, my clients can see how true active management can really outperform in a better risk-adjusted fashion and grow your wealth more effectively.

 

In my effort to continually dispel the myth that the markets can’t be beat, I have begun posting all my past newsletters on our website. I invite you to check it out any time to see how we’ve been able to navigate these markets since the very beginning of the year. These posts are stale-dated by 1-month and will not include performance data – this up-to-the minute information will remain exclusive to you, my clients.

 

We are heading into what is historically known as the three worst months of the year for the markets. After a quick snap back rally in the indexes, July posted the first positive monthly return of 2022. I’m not betting the next 3 months will have the same results. We are now sitting at almost 50% cash and waiting for the market to give more clues before adjusting our sails one way or the other.

 

To quote the notorious slugger Jack Parkman from the 1990s movie Major League 2, “don’t stand in the tracks when the train is coming through”.