Across My Desk: The Can-of-Tuna Market Strategy
Every now and then I run across a market newsletter that both makes sense and is filled with solid information. At the end of January, Harold Evensky, president of Evensky&Katz Wealth Management, sent his clients a letter worth reading. Below is his press release (that, in fairness of disclosure, I had a hand in writing). At the end of it, follow the click-on instructions to read the letter in its entirety.
Here's info from press release:
"Worried Over Market Volatility? Consider the Can-of-Tuna Strategy
With the market's current volatility, one prominent wealth manager's simple advice makes sense, calms nerves and may help you prosper.
If the stock market's volatility has you on edge, the simplest advice can be the wisest. In his January 2008 market letter, Harold R. Evensky, president Evensky & Katz Wealth Management, reminds investors in his own easy-to-understand fashion how lower stock prices offer "sale price" opportunities.
Well aware that investors often have the urge to sell their assets when stock prices are declining, Evensky, president of the Coral Gables, FL based firm offers his readers this simple investing strategy advice in his letter titled, Thoughts on Recent Market Volatility:
"If tuna fish normally sells for $1 per can, you'd go to the grocery and buy just the amount you need for current consumption. If the price went up to $2 a can, you'd probably cut way back on your purchase of tuna fish. And, if it went on sale at 50 cents a can, you'd think, "Wow! This is a real bargain!" and you'd buy cases to stock up at that great sale price."
Evensky knows that no one likes seeing his or her nest eggs dwindle but understands the value inherent in a declining market. "Unfortunately, as generations of markets and decades or research confirm, the only way to make money in the market is to be in the market through thick and thin," he said."
To read Evensky's January 30, 2008 market letter, Thoughts on Recent Market Volatility, do the following: Visit: www.evenskykatz.com; click-on "Resources" at the top of that home page; click-on "Advisor Reports" in the column on the left of the page: and viola, click-on the market letter commentary under its title to read Evensky's comments in total.
Any problems finding it please e-mail me.
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