It’s March Madness -- that time of year when a whole lot of scrambling goes on, off and on the basketball court. The college basketball playoffs always remind me of how certain people approach investing – like it’s one big guessing game!
As we come into March and get closer to tax filing deadlines, inevitably, random people and some friends and acquaintances ask me where they should put their money to get the best performance this year. My first reaction is, “Really?” Talk about madness.
Trying to predict this years’ best performing Mutual Funds is about as dicey and has about the same chance for success as basketball fans trying to predict this years’ Final Four Teams. Just like there are all kinds of unforeseen things such as coaching mistakes, missed shots, injuries, bad calls and poor performances that can derail a basketball team, there are even more things that can affect a Funds’ performance. Everyday Investment Managers and investors are bombarded with news from around the world that may or may not help their favorite funds increase or crash and burn. Political squabbles, rising interest rates, North Korea, Russian interference, Terrorism, ad infinitum.
Investing is not a game where there’s a quick winner and loser. You are dealing with your money and long-term goals. These are serious concerns and must be handled more thoughtfully. There is no such thing as a “star” fund and chasing investment opportunities like a fast-moving basketball is true madness.
I rarely get approached during this or any other month by people asking me if I could help them create a thoughtful investment strategy that matches their age, goals and risk tolerance! But, I’m eternally optimistic that the day will come, and when it does, I’m ready, willing and able. In the meantime, that’s the strategy I propose to eliminate any kind of shortsightedness when it comes to investing one’s hard-earned money.
This content is provided for informational and educational purposes only. The information, analysis and opinions expressed herein reflect our judgment as of the date of writing and are subject to change at any time without notice. They are not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation. All investments carry a certain risk and there is no assurance that an investment will provide positive performance over any period of time. Information obtained from third party resources is believed to be reliable but not guaranteed. Past performance is not indicative of future results.