| PLJ
Advisors’ Approach to Your Investment Needs |
|
Past performance has little to do with predicting
future performance!
Most investors and fund professionals rely heavily
on past performance to predict where the “meatiest”
returns will be next. PLJ Advisors might convince
you otherwise.
Keep in mind, however, that although past performance
is not exhaustively predictive, these records do
point PLJ Advisors in the right direction for you.
Our research team takes a look at the companies’
mutual funds that have been doing very well relative
to their peer group, and take our investigations
from there. |
|
|
Our
research team will look at the fund track record.
Only the most outstanding performances will be considered.
Here is what our research team look for:
• Consistency
• Special factors that may not be repeatable
• Level of assets
• Expenses
|
|
|
For
a limited time only, and as our way of saying thank
you, we are temporarily offering the following
no strings attached bonus:
Bonus: Life time No
Advisory Fee college 529 savings plan
for children in your immediate family.
CLICK
HERE
to receive your bonus plus a free
evaluation of your investment protection needs or
call 1-888-755-2525.
|
|
|
| Allocating
Your Assets for Maximum Efficiency |
|
 |
Asset
allocation refers to the process of dividing your
investments among different kinds of assets; for
example, stocks, bonds, real estate, etc. to decrease
investment risks and increase profitability.
Please keep in mind, there are never any guarantees
with any investments. However, PLJ Advisors do their
best to help you get a better return for the risk
you are taking..
PLJ Advisors go through definitive asset allocation
steps to help minimize your investment
risks while maintaining the highest return possible
on your investments.
As we are explaining the process, we will use 4
portfolio models just as an example to illustrate
our point. None of these types may be right for
you. Contact a PLJ Advisors representative to
find out what is best for you.
Portfolio Models:
(Color coded)
1. Conservative Balanced
2. Balanced
3. Equity-Tilted Balanced
4. Equity
The Conservative Balanced
portfolio would be the most conservative in
this example, and the Equity
portfolio would be the most aggressive.
|
|
|
|
|
PLJ Advisors Steps for Investment Success |
|
A fat
pitch is when the market gives you an extraordinary
opportunity by driving financial assets up or down,
allowing you to get in good or get out now!
Warning:
Do not invest based
on on fat pitch analysis without consulting a licensed
professional. PLJ advisors
will be able to assit you with any information you
mnay require in that area..
While uncommon, fat pitches are usually caused by
irrational greed and fear. When this happens, we
deviate from our neutral allocations and swing hard!
Here are some examples of historical fat pitches:
• Pulling out with overvaluation
of junk bonds in the 1980s
• buying in stocks, bonds, small caps, REITS
and junk bonds in the beginning and late 1990s
• Buying in long term bonds in 1994
• Buying in REITS and Value Funds in 2000
Identifying and taking advantage of these fat pitches
can save enormous amounts of money and increase
yields significantly.
PLJ Advisors research team applies a consistent
approach to identifying fat pitches: Their discipline
allows us to swing only when we have a very strong
indication that the odds are in your favor. We have
the patience and “intestinal fortitude”
to wait and act when the markets are irrational.
Here are examples of when we typically act on a
fat pitch opportunity:
• When one asset class
is significantly undervalued compared to competing
classes
• When cyclical and other factors don’t
detract from the valuation story
• When long term trends don’t detract
from the valuation story
|
|
|
| Scenario
Analysis to Test the Risks for Your Portfolio |
|
Our
research team in depth scenario analysis assesses
the different risks your portfolio may encounter.
They asses the downsides of stocks, bonds
and individual funds. These analyses help
us determine when to be more or less defensive
in our investing.
PLJ Advisors know that risk control is critical.
We only take action when we believe that the
odds of success are very high. There are no
guarantees in investing, but PLJ Advisors
works to keep your investment risk at an acceptable
level. |
|
|
For
a limited time only, and as our way of saying
thank you, we are temporarily offering
the following no strings attached bonus:
Bonus: Life time
No Advisory Fee college 529
savings plan for children in your immediate
family.
CLICK
HERE
to receive your bonus plus
a free evaluation of your investment protection
needs or call 1-888-755-2525.
|
|
|
| Stocks
and Bonds: Your Favorite Subject! |
|
|
Many investors date their research back to
the 1800s. PLJ research team does it differently
because we realize that it was a completely
different world back then. We use data
from 1950 forward for these reasons:
• It is a long enough period to form
realistic expectations for the future, but
not so long that it is based on ancient history
• It is similar to current and expected
future conditions
• This period includes a variety of
economic conditions that will probably recur
There are periods in history that out research
team eliminate, such as the Great Depression,
World War II and the period immediately after
World War II.
Here is why:
• They eliminate the Great Depression
because the dramatic changes in the economy
and financial markets make a repeat of such
an event highly unlikely
• They exclude World War II because
it was such an unusual period. World peace
is unlikely, but so are the conditions during
World War II
• They leave out the period right after
World War II because the Treasury controlled
interest rates tightly, having a huge impact
on stocks and bonds.
While this period does exclude these extremes,
it does include the following:
• War
• Recession
• Stagflation
• Strong economic growth
• Political Crisis
• Stock Market crashes
• Oil Crises
• Huge moves in interest rates
All of these incidents are likely
to recur.
|
|
|
|
| The
Right Investment for You: Stocks or Bonds? |
|
|
Stocks
are far more risky than bonds. However, history
tells us that no matter where the market goes,
stocks are the best investment for the long
term. You will inevitably experience more
“ups and downs” in the stock market
than you will with bonds, and these losses
are felt acutely.
However, history tells us that over the long
haul you will generate more returns with stocks
than bonds.
PLJ Advisors recommend that you diversify
your portfolio between stocks and bonds. This
way, you can potentially gain greater returns
on your stocks, but the “safer”
bonds are there to keep you floating and help
you weather the stocks’ roller coaster
ride.
How much of your portfolio you invest in stocks
or bonds usually depends on these factors:
• Your risk tolerance:
How will you handle the ups and downs of the
stock market?
• Your short term and intermediate term
goals: Do need money to buy a house or supplement
your children’s college fund?
If you have pressing short term goals, than
investing more of your portfolio in bonds
may be the right choice for you. However,
everyone has long term goals, so at least
some of your investment should be in stocks,
where you will likely get better returns over
more years.
|
|
|
|
|
Stocks
are the “high octane” asset
class. They have earned significantly higher
total returns than bonds, averaging a 14.5%
average return over a 12 month period, compared
to intermediate term bonds, which received
only 6.4% average
return over a 12 month period.
Remember, the longer the holding period,
the higher the probability that stocks will
beat bonds.
Below is a chart to show the percentage
of periods that stocks beat
bonds.
As
you can see, the longer stocks are held,
the more return they generate over bonds.
Stocks do have greater risk potential than
bonds, especially in the short term. However,
if you stay the course, over time stocks
have a much higher average return.
More to the point, stocks provide better
real returns than bonds. Real return is
defined as “stuff”, or purchasing
power, rather than money (nominal returns).
So the increases or decreases in your purchasing
power is your real return.
Formula for real returns:
Nominal Returns –
Rate of Inflation
With stocks, you are likely to see less
nominal returns on your investment, but
far more likely to gain real returns, which
is what it is really all about: Purchasing
goods or services, not pieces of paper.
PLJ Advisors feel that in the long run diversifying
more of your portfolio to stocks is the
best path to long term wealth.
Please keep in mind that there are no
guarantees in the stock market.
|
|
|
|
|
Bonds
are the “safest” route for an
investor. You are less likely to lose money
on your bond investment, but also less likely
to generate higher returns.
There are certainly upsides to investing on
bonds. For example, bonds usually outperform
stocks when the economy is in recession (though
not always). This is because interest rates
tend to fall in a recession, and when that
happens, bond prices rise. Bonds also tend
do better than stocks
following a big decline in inflation.
Let’s look at an example of when bonds
outperformed stocks:
The
1970s were a great decade for bond
investments. Two recessions occurred
during the 70s: All four quarters
in 1970 and during the first quarter
of 1974 through the first quarter
of 1975. Plus, the bear market that
occurred in 1973 and 1974 promoted
bond returns and were abysmal for
stocks.
The data shows that from June 1969
to May 1975, bonds earned a cumulative
47.3% (1.4% annualized) compared to
stock performance of only 9.0% (1.4%
annualized). During the worst 60 month
period (ending September 1974) bonds
outperformed stocks by over 60%!
|
This example illustrates PLJ Advisors reasoning
for always allocating at least some of your
portfolio to bonds, even though stocks are
more likely to produce a higher return.
|
|
|
|
| The
Effect of Inflation on Your Investments |
|
Inflation
is the upward movement of prices for goods
and services. As the cost of goods and services
increase, the value of the dollar decreases.
However, the Fed actively tries to control
inflation by maintaining a specific rate of
inflation, usually between 2%-3%.
Inflation is devastating for both stocks and
bonds. Here is how it will affect your investments:
|
|
|
| Inflation
and Your Stocks |
|
Inflation
is bad for stocks because the Federal Reserve
raises interest rates to battle inflation,
which puts downward pressure on price earnings
ratios (what you are willing to pay for corporate
earnings) as well as earning growth. Inflation
eats away at the real value of company earnings.
However, because stock returns are usually
higher than bond returns, companies usally
have the power to raise prices and keep pace
with inflation. This potential for companies
to respond to inflation makes stocks a better
inflation hedge.
Stocks will normally produce higher
returns during inflation.
|
|
|
Inflation
drives interest rates up, lowering the prices
of bonds, and capital losses result. Inflation
also erodes the purchasing power of bond coupon
payments.
Inflation is deadly for bond investors.
|
|
|
| What
About the Next “Bear Market”? |
|
A
bear market occurs when investment
prices fall and results in widespread
pessimism.
Corrections and bear markets (big and small)
are part of investing. Historically, bear
markets have resulted from periods of rapid
inflation and/or severe economic slowdowns.
Bear markets are impossible to time, and for
this reason, we don’t think that you
should risk the superior returns of
your stock investment for fear of a bear market.
Bear markets come and go, but if you stick
with your investments, chances are you will
come out on top anyway.
|
|
|
For
a limited time only, and as our way of saying
thank you, we are temporarily offering
the following no strings attached bonus:
Bonus: Life time
No Advisory Fee college 529
savings plan for children in your immediate
family.
CLICK
HERE
to receive your bonus plus
a free evaluation of your investment protection
needs or call 1-888-755-2525.
|
|
|
Through
our research team strict evaluations of potential
fund managers, our expertise and our dedication
to you, PLJ Advisors can offer you more peace
of mind with your investment.
There are never any guarantees with investing
of any kind, but PLJ Advisors can assist you
in diversifying your portfolio to suit your
immediate and long term needs and goals.
Contact a PLJ Advisors representative today
and get started on the path to investment
success!
|
|
|
|
|
To get your free retirement
evaluation and learn how you can retire with more money than
you thought possible, call: 1-888-755-2525
or contact us here |
|
|
Get a FREE report on
WHY SOME PEOPLE ALMOST ALWAYS MAKE MONEY
IN THE STOCK MARKET
SIGN UP Below
|
|
|
|
