Turkey - Another Reason to be Diversified

Do you try and time the markets? Do you make sector bets? Do you buy the U.S. Dollar or sell it? What about country specific investing? Do you try and pick countries that you think will outperform like Turkey? What about bonds in a rising interest rate environment? Or, in a declining interest rate environment? What do you do?

How about what the President is doing? How do you invest around that?

Of course, do not forget the Federal Reserve and what they decide to do with interest rates. Where are you investing when they are raising rates?

This is just a very small tidbit of questions that you should ask yourself, if you are one of the people out there who thinks they can manage money on their own. You have to know what to do in all of the above situations and be right about it more times than not. Have you been consistently right? Because, one wrong decision can cost you plenty.

Doesn't it make a whole lot more sense to hire a professional money manager who shoulders the burden for you? We are all on this earth for a limited time, so why on earth do you want to spend it doing your own money management? It just doesn't make any sense to me.

What is your time worth? Take your salary or your last salary and divide it up by 365 days per year. Break it down to an hourly rate. After you have done that, then take an honest assessment of the hours you spend watching CNBC, Bloomberg, or Fox Business. Then, keep going and assess how much time you spend on the Internet researching investments. Of course, do not forget the Wall Street Journal, Barron's and the investment newsletters that you subscribe to either. Take on some more time with reviewing emails and statements from your brokerage firm. Don't forget about taking the time to trade, because you have to slow down and make sure you do not make any mistakes when you trade. Also, you need to factor in your conversations with friends, or going to free lunch seminars with other financial advisors to see if you can get some free advice.

All in all, how many hours are you spending managing your own money? When you put the pencil to it, if you are honest with yourself, then the amount of time spent or wasted on these activities will probably surprise you. Don't forget about the fact that you are a rank amateur either. When you make the wrong decision, then it can cost you plenty.

Did you go to cash in 2008, or just ride it out? If you went to cash, then when did you get back in? You see, there are two decisions when you go to cash. One to get out and the other to get back in. It is easy to get out, but much harder to know when to strategically get back into the market. Keeping in mind of course, that you may need a whole new portfolio at that point. After all, the one that you got out of obviously wasn't working or you would not have gotten out of it in the first place. This means that you will need to do a whole lot more research, doesn't it? Not really, because researching investments is something that you can constantly do and it will probably will not make a hill of beans in your performance. You see, the asset classes that you choose to invest in will be what really matters.

Investing is challenging, even for professionals. Professionals have a whole lot more tools at their disposal than you ever will have. Think about computer algorithms, for example. Do you really think your decision making skills is going to out fox a computer algorithm that can make trades in a split second?

The best thing you can do as an investor is hire a professional money manager. Spend time doing the things that you love to do and with those who you care about. You will be much better off. There is a light at the end of the tunnel for all of us. It is best to spend your time wisely.

Alfred E. Newman Stock Market

Those of you who remember the cartoon character from Mad Magazine, Alfred E. Newman, will recall that there was usually a caption saying, "What? Me Worry?" This market reminds me of that line. Nothing to worry about with this market. If you have been sitting on the sidelines, you are missing out on one of the strongest bull markets in American history.

The best place to be as an investor is fully invested. It is even better if you can regularly add to your accounts every month. However, there are pockets where you may want to re-position some funds.

There has been some quick and major changes in some sectors of the market. Some sectors such as real estate and utilities are showing some weakness. If you look at these two sectors on a chart, then you will see that there is no bottom in sight right now. A good reason to get out for now and take a wait and see approach as to when to get back in.

This is VNQ - Vanguard Real Estate ETF

This is VPU - Vanguard Utilities ETF

As you can see from both charts, they appear headed lower. A good reason to get out for now. This is a direct result of the new tax law that did no favors for the REIT and Utilities industries.

Thanks.