Press Release: Award-winning financial author and advisor Joseph J. Janiczek offers an inspiring financial tip for serious investors for 2012.

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“If you’re a working or retired executive or biz owner struggling to get your hard-earned and accumulated wealth properly managed in these challenging economic times, please know this: your lack of recent financial progress is NOT because you aren’t hip to the latest Wall Street, banker, insurance company or commodity/currency trader tricks…

…or because your not following the “right” market analyst…

…or because you’re not spending enough time studying economic conditions.

Nope. The success you crave in managing the wealth you created is being held up because of something much more simple…and much easier to solve.

Mr. Janiczek then jumped into his media release:

“Hello…

The executives, biz owners and retirees who are not only surviving but thriving in today’s volatile economic and investment conditions…

…know there is NO magic voodoo to managing their nest eggs well in all market conditions.

Here’s the profoundly simple FORMULA for successful investment and wealth management for 2012 and beyond: Don’t mistakenly make your investment portfolio the centerpiece of your financial security…it is not. Do make your BALANCE SHEET…the true epicenter of financial security and independence…the focal point of your financial and investment management and you will immediately begin to see and act on massive opportunities to improve your results.”

Mr. Janiczek is CEO of Janiczek & Company, Ltd., an exclusive wealth management company serving affluent and super-affluent clients across the country. He continued on:

“It’s really simple.

▪ Your balance sheet is like the “central nervous system” of your finances – all strengths, weaknesses and vulnerabilities can be EARLY detected and rapidly confronted and resolved here.

▪ Your investment portfolio is one out of many important elements of your balance sheet. Wall Street conveniently likes to treat portfolios in isolation but this does not work…The vulnerable dependence investors feel when this unnatural approach is taken is quite evident.

▪ The secret to getting the financial security and results you want without all of the financial complexity – is to completely change your focus from your portfolio to your balance sheet. When you do this you will begin to experience optimal financial awareness and control…which is a liberating and life changing experience!”

Mr. Janiczek then offered some stern advice:

“So until you shift and make your balance sheet the epicenter of your wealth management, you don’t need another investment, retirement or economic tip…

…So turn off MSNBC, stop trying to figure out the implications of every political, economic, sovereign debt and financial report (all external items outside of your control) and focus on making your balance sheet – which is completely in your control – as strong as it can be.” 

Janiczek, who recently released a “must read” book that makes the complete case for this approach (Investing from a Position of Strength, A high net worth investors guide to surviving and thriving in all economic and investment climates, Prosperity Press, $24.95), – click here to get immediate no-cost access to the audio book version – continued on with what he believes most investors really do need:

“Investors of all types DO need to learn the simple secrets and advantages of mastering their balance sheet.

It doesn’t take long to nail this capability (when you have just the right help).

In fact, it is truly SIMPLE to accomplish when you have the right advisor guiding you with the right system…a system that serves as a powerful ongoing financial command post for your balance sheet, cash flow and portfolio.

And once you “get” it…

…THEN you will breath a huge sigh of relief and know without a doubt, that you found the key to achieving and maintaining long-term financial security and independence.”

Janiczek then posted and answered a common question he gets from investors eager to better manage their money:

Can you really get this advantage quickly and easily in place?

“The simple answer: Yes you can!

I’ve taken worried widows with no financial interest or knowledge…to savvy financial sophisticates with decades of intense/advanced experience of their own…and quickly and easily put this simple order and discipline in place to serve them…

…and through a streamlined process…

…swept away any confusion about what is underutilized, what has been holding them back, what is strong, what is weak…and most important of all…WHAT is fundamentally missing.

Believe me, without a properly organized financial command center – something we can easily put in place for any affluent or super-affluent investor located in the U.S. – even the best and brightest have “blind spots” and “numb spots” that were formerly undetected. These issues can be easily and quickly converted back into strengths…

…Think about this profound new capability, NOW within your reach. This is where true financial peace of mind and vibrant financial health comes from.

AND guess what. This is the “low hanging fruit.” You can easily put this new capability in place without a huge investment of time or money. This is easy.

Easy, easy, easy, easy…”

Janiczek then posted two simple and powerful ways investors can have their balance sheets, portfolio and retirement preparedness reviewed:

“1. Go to http://www.janiczek.com/resources/free-tool/ to gain free access to a powerful online financial strength test tool we created for investors of all types to instantly assess your strengths, weaknesses and vulnerabilities. In minutes you will be able to truly assess where you are, what you need to focus on and what type of advisor you may need to help you. There is no other online tool like this…anywhere. It utilizes a part of Janiczek’s patent-pending wealth management system used with the affluent (individuals with $1 million to $15 million portfolios) and super affluent (individuals with portfolios $15 million+) that his firm exclusively serves.

2. If going online and walking through a simple multiple- choice process is not your style, email Janiczek at request@janiczek.com or call his company at 303-721-7000 and request a complimentary review with one of the firm’s advisors. Frankly, most affluent and super-affluent investors fall into this category…even at this preliminary stage they want a personal, caring approach, not a digital do-it-yourself approach. There are three conditions in order to qualify for this second option. Namely you must have a portfolio of $1 million+, you must be a U.S. citizen or resident and you must complete a 10-minute pre-meeting telephone interview with a Janiczek advisor so that you know what to prepare for the meeting and the advisor knows your perception of your biggest need.” 

Question: 

Does it matter if I already have one or more other financial or investment advisors?

“No. Remember, we’re talking about putting in place something we’ve found all of the others have overlooked: A financial command post that enables you to first and foremost make and KEEP your balance sheet…the life line of your financial security and independence…rock solid strong at all times.

Here’s what we find:

▪ The strength, weakness and vulnerability measurement process we recommend is going to help investors separate the wheat from the chaff across their entire balance sheet…including their current team. In going through the process, it will become obvious who to keep and who to replace. Our aim is to compliment whatever part of the team a client elects to keep on board.

▪ Many investors who contact us already know they do not have the right talent in place in certain areas…such as the position of financial or investment advisor. In such circumstances, our process will actually confirm their doubts and put the new client on the right track with a new upgraded system and new advisor all at once.”

Mr. Janiczek then posted and answered a final question:

Question:

What if I like doing some of my money management on my own?

“So long as an investor is interested in getting the desired results with the least effort, they should look into what we have…

…our system and service is going to help them pinpoint and compliment their “best practices” and eliminate and change their “worst practices” regardless of how they presently are being handled.

Frankly, we will be able to independently assess the areas where investors have dabbled or dove into and give them confirmation that they are on the right track or concrete grounding why they should delegate some or all investment and wealth management functions to get a better result.”

Mr. Janiczek concluded the press conference with a specific action plan for investors to act on this new insight in 2012…An “Ultimate New Year Resolution” for all investors in 2012. He posted and commented on another statement:

 

Here is what YOU need to do now if you are an affluent ($1 million +) or a super-affluent ($15 million+) investor:

“If you are an affluent or super-affluent investor with a portfolio of $1 million or more, for a limited time only, you can A) get free access to our online financial strength test tool (go to: http://www.janiczek.com/resources/free-tool/ and/or B) you can conduct a no-obligation consultation with one of our advisors.

To get on the list and schedule one of these review sessions, qualified investors should simply call 303-721-7000…

…or email us at request@janiczek.com.

Each private session will be a meeting of substance, where we dig deep and look to pinpoint what we see as each investors biggest opportunities for improvement concerning their balance sheet, portfolio, retirement and overall financial security and independence.”

Then he added the following:

“KNOW THIS: We are masters at pinpointing the biggest opportunities for improvement. We are highly prepared to spot the root cause of what IS working and what IS NOT working in an affluent or super-affluent investor’s finances. Once we do this, we explain the corrective action that we believe will make the best long-term impact on their results.

So, this is actually a no-brainer…particularly when investors consider that we are a fiduciary advisor (we legally have to advise each client in what is in their best interest) and we are a fee-only advisor (we sell no products and make no commissions or kick-backs for recommending any financial products whatsoever).”

Then Mr. Janiczek mentioned the logistics of how meetings are handled across the country/world:

“Discovery Sessions are handled in person out of our headquarters in Denver Colorado (if you are in the region or wish to fly in) or, more often than not, via a telephone/Internet connection to anywhere in the world…

…It’s a convenient and risk-free way to get a second opinion on where you are at, where you want to go and what, if anything, is holding you back. As always, all information exchanged in the meeting remains strictly confidential – this is the cornerstone of all of our client/advisor relationships.

The special review sessions will not be available long so I encourage those serious about wanting to improve their financial and investment results in 2012 to call 303-721-7000 or email request@janiczek.com and request one of these sessions.” 

This concludes the Press Release.  For more information on this release or to arrange a press interview with Mr. Janiczek please call 303-721-7000 and ask for Mr. Janiczek’s assistant Linda Moore.

www.janiczek.com

How to permanently escape financial worry and chaos: Take Command of your investment portfolio, retirement and wealth for good!

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Have you ever brought yourself to a new state-of-mind that took your results to a whole new level of excellence? Personally, I can identify specific moments in time with diet and exercise, career and money, and faith and spirituality – to name a few – where my results changed the instant I changed my mindset. Have you had the same experience in one or more areas of your life?

I now have decades of experience observing what works and what doesn’t when it comes to helping people master money at higher and higher levels. I have come to realize that regardless of amount of wealth (large or small), amount of experience/knowledge (high or low), age or any other factor, the tipping point that makes all the difference in the world is a commitment to “take command” of ones wealth. Taking command, in this context, is an affirmation declaring authority and control over money. It is a bold stand that declares that the only option forward is doing the best with what you have and that you will accept nothing less than excellence in making your money serve you…and not vice versa.

Given all of the financial worry, fear and feeling of dis-empowerment that I notice among investors large and small, I know that a good 98% of people reading this can benefit by taking this critically important step. Levering off of Neil Armstrong’s famous first words when he took the first step on the moon, I like to say: “one small step, one giant leap for financial mastery”. So if you really want to once and for all learn how to take command of your investment portfolio, retirement and wealth and genuinely enjoy and optimize what you have – large or small – read on. Continue reading →

Thriving before Retirement and after Retirement

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In the simplest terms, I like to think of the aim of our investment and wealth management services as helping our clients thrive before retirement and after retirement. Here’s three items to check on to see if you are on the right track either before retirement or after retirement:

  • Is your balance sheet, cash flow and portfolio your friend, or your foe? In order to thrive, you need all three of these critical personal financial elements consistently working in your favor. If you have no idea whether these items are hurting or enhancing your life or no support system and expertise to get you and keep you on track, you have some core issues to address.

Continue reading →

Good Fortune vs. Great Fortune vs. Lost Fortune

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We solely work with people who have had some good fortune or great fortune in their lives that led to a seven or eight figure investment portfolio. In the simplest terms, the objective of our services is to help people turn good fortunes into great fortunes or great fortunes into greater fortunes. Our arch enemy is the neglect – which we believe is very common in the world – that leads to lost fortunes. Here is my definition of a good fortune versus a great fortune or a lost fortune:

  • Good Fortune: Wealth accumulated primarily through ones work and expertise. If you were to look at where your wealth originated it was your good fortune (or that of someone you inherited the wealth from).
  • Great Fortune: Wealth multiplied effectively and efficiently once it has been accumulated to the point of being able to permanently (as in all investment and economic conditions) sustain your standard of living with no earned income. You can have a great fortune and still have good fortune characteristics simultaneously (i.e. continuing to earn and create wealth via your vocation as your portfolio multiplies).
  • Lost Fortune: Wealth that is depleted or depleting at an unsustainable level. Lost fortunes occur due to poor, neglectful and incomplete management. Our estimate is that a far majority of fortunes are presently on this path.

So, use these three definitions to define your fortune at present. Which best describes the path you are on? Which best describes the path you want to be on? If you have a seven or eight figure portfolio and are interested in building a great fortune, we would be interested in working with you. Call is at 303-721-7000 and request to speak to one of our advisors to arrange a complimentary financial review or email us at request@janiczek.com.

Janiczek & Company, Ltd. named NABCAP Premier Advisor

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The National Association of Board Certified Advisory Practices (NABCAP) once again named Janiczek & Company, Ltd. of Greenwood Village, Colorado among a small list of “premier advisors.” Janiczek & Company, Ltd. has been named among the top, best and most exclusive investment management, retirement planning and wealth management companies in the nation multiple times.

“The NABCAP process of evaluating advisory practices is the most comprehensive we have seen” says company founder and CEO Joseph J. Janiczek. “We are proud to build upon our long tradition of excellence with this great honor.”

Janiczek & Company, Ltd. provides comprehensive investment management, retirement planning, financial planning and wealth management services to financially successful individuals across the country with portfolios of $1 million and above. For more information call us at 303-721-7000 or email us at request@janiczek.com. Or, go to www.janiczek.com.

The right advisor; doing the right things right; while you confidently flourish in all economic conditions™

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Here’s my simple formula for what every high net worth investor needs:

  • the right advisor. Most people get this wrong, here is our definition: A fee-only, fiduciary advisor, who has the expertise, routines and relationship skills to provide you with the direction, expertise and services needed to continually optimize all aspects of your finances (including your portfolio, retirement and balance sheet).
  • doing the right things right. Again, most people get this wrong, here is our definition: An advisor who masters the Five Guiding Principles™ and 35 Essential Strengths™ on your behalf and provides the system, structure, support and discipline needed to predictably achieve desired results. This includes expert investment portfolio management, retirement planning, financial planning and wealth management.
  • while you confidently flourish in all economic conditions. This is not a pipe dream, it is an actual state available to anyone fortunate enough to have accumulated a seven or eight figure portfolio. It is the culmination of doing the above two items correctly to the point of an optimally SAFE financial state (optimal Strength, Agility, Flexibility and Endurance).

I’ve spent decades building an organization dedicated to mastering these three aims. I believe one of the reasons we have been named among the top, best and most exclusive advisory firms in the nation multiple times is that we continually seek to genuinely be and embody these three attributes.

We are interested in being your advisor.  If you are interested in pursuing this possibility, call us at 303-721-7000, email us at request@janiczek.com or visit our website at www.janiczek.com.

™ & © Wealth with Ease, LLC. All rights reserved.

How elite special forces…like the Navy Seals…can help you be a better investor

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A friend of mine works very closely with elite special force military personell. He explained to me four states of alertness that they use to describe their state of awareness/alertness:

  • White: a state of total unawareness; a zombie state.
  • Yellow: a state of general alertness; basically aware of general surroundings/conditions.
  • Red: a state of heightened alertness; extremely aware of surroundings/conditions.
  • Black: a state of combat alertness; kill or be killed.

He explained that they are taught to totally avoid the white state, to live in the yellow and red state (depending upon circumstances) and, of course, that the black state is reserved for the most extreme of conditions.

As soon as he told me about this…I immediately related its use in effective financial and investment management…

…You see, in my own work, I have found that the affluent investors (individuals with portfolios of $1 million to $15 million) and super affluent investors (individuals with portfolios of $15 million+) I specialize in serving typically lack the proper wealth management platform to operate in the “yellow,” “red,” or “black,” zones of alertness…and this needs to be the first order of business when a new client begins working with us.

Frankly, I believe nobody should ever be in the “white” zone, yet, when it comes down to it…many have such a poor understanding of their strengths, weaknesses and vulnerabilities…and an even poorer understanding of dangers, strengths and opportunities in the investment climate…that they are operating in the zombie zone.

On the other end, I have seen investors so bothered and confused about investment conditions that they enter into the “black” zone in non-combat conditions, greatly over-reacting to conditions…expending precious energy in the wrong place and at the wrong time.

BUT, there is a solution: Our proprietary Wealth with Ease® System is designed to keep clients continually in a comfortable “yellow” zone and periodically (when needed or desired) in a “red” zone. At the same time, I believe it is our job as a client’s advisor to always be in the “red” zone and to be able to instantly move into the “black” zone in times of extreme market duress.

Here’s an example: What came to my mind is the President of the United States and the Secret Service around him and his family. It is the job of the Secret Service to be in a heightened red zone constantly and be able to instantly shift into the black zone should a threat erupt. This, in my opinion, is the identical job of your advisor. Then, periodic financial and investment reviews and reports should be used keep you the client comfortably in the yellow zone most of the time and red zone when needed.

Ask yourself: What zone am I in? What zone does my advisor typically operate in? Is my advisor prepared to instantly move into the black zone on my behalf? This is where the rubber meets the road.

Yields on Italian, Greece, Ireland, Portugal and Spain Government Bonds illustrate continued problem to solve

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Bond yields primarily go up when the risk of default or the risk of inflation goes up. Due to unsustainable spending and promises by governments in Portugal, Italy, Ireland, Greece and Spain (now known as PIIGS) have caused havoc in world markets, as can be seen in todays markets. Just ten days ago, Italian bond interest rates increased to 6.11%. Today, these rates soared to over 7%. Yields (as of 10/31/11) in Greece were 24.08%, Ireland 8.20%, Portugal 11.88% and Spain 5.46% – all illustrating growing concern over the balance sheets and cash flows of these nations.

Our research shows that the ECB (European Central Bank) will likely need to permanently expand its balance sheet in order to stabilize the situation. Even though our Rally Watch indicators have flashed some buy signals, we have resisted the temptation to increase our equity exposure due, in part, to this uncertainty in the world markets. Keep tuned in.

Quote of the Week: “If you want to build a ship, don’t drum up people together to collect wood and don’t assign them tasks and work, but rather teach them to long for the sea.” – Antoine de Saint-Exupery

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I’ve thought long and hard about what drives me and our organization. I have been blessed with a tremendous amount of ambition all of my adult life and have, in the process, attracted great co-team members who have augmented and strengthened the intensity of our drive. The question is, what do we long for? The answer can be useful to our growing team, to our long-time clients and to our constantly growing number of new clients.  Here is my best answer:

“We long to genuinely and completely care for our clients financial well-being.”

I define the above as the root of our passion, ambition and success. Our desire to care for clients has motivated us to be a fiduciary advisor (legally having to do what is in the best interest of our clients), has been the inspiration of 25-years of constant study, innovation and relationship building, and is the inspiration behind our proprietary Wealth with Ease® System. Personally, I believe we care more, care deeper and care better for our clients assets because of this underlying ambition.

I once heard an advisor from a different firm say: “nobody cares more about your money than you do” and it didn’t sit right with me. I know why. I do believe it is the job of a financial advisor to care more. At Janiczek & Company, Ltd., I do believe we care more about our clients money than our clients do and that this is what we are paid to do. Our care must go deeper and wider than our clients have the ability to go into on their own.

I invite each reader of my blog to review our website at www.janiczek.com. See if you can see the spirit of our desire to genuinely and completely care about our clients financial well-being. If you like what you see, contact us at 303-721-7000 or request@janiczek.com and start seeing our care in action.

Another reason to be Optimistic about the possibility of an end-of-year Rally

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Credit conditions as a whole is one key indicator I watch as an early indicator of the health of our economy. Improving credit conditions is bullish, declining credit conditions bearish. Specifically, I look at the volume of real estate loans, consumer loans and commercial and industrial loans and then a composite of all four. Here’s some interesting observations:

  • After nine straight quarters of negative consumer loan volume, volume moved into the positive zone this last quarter (ending 9/30/11).
  • After eight straight quarters of negative commercial and industrial loan volume, volume here now has three straight quarters of positive and growing momentum.
  • Real Estate loan volume is now in its thirteenth quarter of negative volume, but the pace of the negative volume is better than the last eight quarters.
  • A composite of all the above loan types just turned positive, after ten quarters of negative volume, but nine quarters of better and better volume.

I caution clients and investors not to utilize such data in isolation. If you follow my work, you know that I believe we are in an extended secular bear market that has choppy pockets of cyclical bull runs worthy of pursuing. After the recent 19% cyclical correction, I am looking for evidence of either a continuation of this bear movement or the emergence of another cyclical bull leg up. Presently, the evidence (as previous discussed with our Rally Watch Indicators) is pointing slightly in the direction of a rally. My themes of investing from a position of strength and having an advisor with a robust investment research and trading platform are key to success now and into the foreseeable future. Let me know if you want more information on either of these capabilities.

Active Management vs. Passive Management in 2011

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The correlation of stock performance relative to the index the stock is in has hit an all-time high at 87% this year. This compares to a historical 43% correlation rate. We have been monitoring the cause of this spike and implications to our investment portfolio management methodology.

In review, our approach has historically been to utilize passive index vehicles where we believe the opportunity for positive active management (called alpha) is low and to utilize active managers where we believe active management can add value beyond the cost of active management. Presently, in the domestic large cap asset class we emphasize passive index vehicles and in the domestic small cap asset class we emphasize active management.

Year-to-date for 2011, our domestic active versus passive mix selection decisions are consistent with our review of the market. In summary, of the 481 large cap funds in our analysis of a basket of large cap funds, only 24% outperformed the S&P 500 index. In small cap, of the 335 in the analysis, 60% outperformed the Russell 2000 index.

We are further examining the impact of ETFs, changes in short-selling and up-tick rules and other factors that may be impacting correlations. An interesting point made by our Chief Investment Officer Jim Callahan is that “the more correlations are elevated, the more chances for mis-pricing between stocks.” This certainly rings true since near perfect correlations would mean companies managed well and those managed poorly would be priced near equal by the market when in fact each organizations future growth, profit and strength may differ greatly. Ironically, this may actually motivate us to adjust our passive versus active mix to favor more active managers in the future. Stay tuned.

Rally Watch Update

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For the last three to four weeks I have been mentioning the possibility of an end of year rally emerging out of the extreme pessimism and oversold conditions that peaked near October 3. Also, last week I mentioned how several of our Rally Watch indicators were close to triggering short-term buy signals. On Thursday of last week (October 27) eight of our sixteen Rally Watch indicators turned positive on news that third quarter GDP beat expectations and the Europeans  agreed upon a substantial plan towards cleaning up the Greece debt problem. This is a decent sign that can bode well for equities for the next two to six months.

What has happened corresponds exactly with our 4Q2011 market commentary titled “The Perception is not the Reality.” In it, we made the case that the numbers we were seeing did not support fears the U.S. was in a recession or going into a recession in 2011. While we moved from an overweight equity position to a neutral equity position in May of this year, we did not see justification to move to a defensive (equity underweight) position in equities at this time. The recent Rally Watch indicators support our position and we see the increased possibility for a nice cyclical (short-term) run in domestic, international and emerging market equities.

For the record, we still maintain that the U.S. stock market is in a secular (long-term) bear market since 2000 so investors need to remain diligent and cyclically active, careful not to overplay cyclical moves on the buy or sell side. Since fixed income instruments (namely bonds) and cash instruments have lower and lower interest rate yields, asset allocation decisions need to be made considering relative indicators as well as absolute indicators. Our proprietary 3D Fusion Approach™ includes such methodologies as well as considering personal issues related to each client’s set of own circumstances.

If you have any questions about the management of your portfolio, please contact us at 303-721-7000 or email us at request@janiczek.com.

 

Quote of the Week: “Two roads diverged in a wood, and I – I took the one less traveled by, And that has made all the difference.” – Robert Frost

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I have always been fascinated by crowd psychology and, upon reflecting on my own path in life, have certainly gravitated to “the road less traveled.” Personally, I have just found it a lot easier to find opportunities and, frankly, peace and balance on the road less traveled than on the path most others were on. I think growing up in a large family reinforces this tendency.

Crowd psychology is a major factor in the price of stocks. At the point of extreme pessimism you have market lows and at the point of irrational exuberance, you have market highs. One of the best measurements of pessimism and optimism is liquidity – when pessimism is high the ratio of cash to stocks is high and when optimism is high the ratio is low. This can be measured in numerous ways, such as on the balance sheets of individual investors, pension plans and mutual funds.

Earlier this year, we saw the cash to stock ratios turn lower and lower and we were concerned about the excessive optimism. This was one of the reasons we moved from overweight equities to neutral equities in May (a well timed tactical allocation move). Now, with fears of a double-dip type recession we are watching this indicator to see if extreme pessimism is in the air, something that can help fuel the potential end of year rally I wrote about a couple of days ago. It is too early to tell at this point, so we remain neutral.

If you are not prepared for such tactical moves or you utilize an advisor who is unprepared and unequipped for this type of move, please call us at 303-721-7000 or email us at request@janiczek.com. We can assess your portfolio management in seven key areas and pinpoint where there is room for improvement in your investment management process.

Watching Technical Indicators Closely to See if Rally Watch Indicators Continue to Improve

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We have sixteen Rally Watch indicators we keep an eye on particularly during volatile times. The deterioration of these indicators back in May of this year was one factor that helped us make a move from overweight stocks to a neutral stock position – a timely move that enabled us to sell millions of dollars of domestic stocks near the years high. The 19% correction since then corrected some of the overbought conditions and we did not move to underweight equities because we have believed concerns of a double dip recession in 2011 were overblown and felt like we already had ourselves in a decent defensive position.

The nice bounce in the last three weeks has confirmed our neutral defensive position and now we look at the Rally Watch indicators to see if a nice year-end rally can emerge to take the S&P 500 above the 1350 or even 1400 mark. It is too soon to tell but several of the Rally Watch indicators have turned positive and several others are near positive. We are not sure whether we will go overweight equities again if the Rally Watch indicators change…this depends on opportunities and valuations in other asset classes. Even so, if we ride up a rally, it may actually point to some profit taking opportunities later in the year as we mix tax harvesting trades along with trades to position portfolios for our 2012 presidential year expectations.

Call us at 303-721-7000 or email us at request@janiczek.com if you want a review of your portfolio given our comprehensive analysis of the markets.

Quote of the Week: “In truth, there is no such thing as a growth industry. There are only companies organized and operated to create and capitalize on growth opportunities.” – Theodore Levitt

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I am sad Steve Jobs, the founder and CEO of Apple, recently passed on. He was a model example of an entrepreneur creating a company organized and operated to create and capitalize on growth opportunities. Apple is a stock that has long been a part of our underlying portfolios.

Given all of the concerns about the economy and volatile investment conditions, it is healthy to remember that owning companies that are organized and operated to create and capitalize on growth opportunities can provide confidence in times of uncertainty. Think about where you can put your money. Here’s a few present options and our thoughts regarding these asset classes:

  • Lend money to the U.S. Government and earn nothing. Look at the yield on Treasuries and then factor in inflation and taxes and you will see what I mean. You essentially add risk for no return. Thus, we recommend that this asset class is avoided at this time.
  • Lend money to Municipalities and earn a decent tax exempt yield. Muni bonds are actually on our buy list. Given interest rate risk and the poor economic shape of some municipalities and the excellent shape of others, I only recommend this asset class to those who utilize a well-researched approach designed to select a diversified basket of quality muni bonds with appropriate duration levels to control interest rate risk.
  • Lend money to Corporations paying a decent yield compared to credit risk. The interest rate spread on high yield bonds has recently moved to a desirable point and is now back on our recommended list. High quality corporate bonds remain on our buy list. Due to credit and interest rate risk, buying this asset class with the right managers is essential.
  • Buy stock in companies organized and operated to create and capitalize on growth opportunities. Given the fact that the valuation of stocks worldwide have turned into a favorable zone (due to recent volatility) we remain neutral in our ownership of stocks (not overweight due to certain economic risks, not underweight due to current decent valuations). The point is, investing a decent portion (say 25% to 60%) of ones long-term assets in a portfolio of such stocks at present valuation levels enables you to be an owner of, not a lender to, such companies.
  • Buy commodities (like gold) that go up and down in price independent of value creation and company performance. As a hedge to currency risk we own approximately a seven percent stake in commodity related holdings. However, we own them in ways we can be long or short certain commodities in a manner where we believe we can better control the risk of owning such volatile assets. We think investors who own commodities without such protection are naked to swift moves as have been seen in gold, silver, oil and agriculture commodities as of late.
  • Hold money in money markets…NOT! Certainly, having plenty of liquid reserves in money market accounts is appropriate for liquidity and safety purposes. However, allocating more to this class than needed for short- to medium-term reserves is absolutely insane. Some investors as of late feel the urge to bolt stocks or certain bonds and go to cash. We view this as a foolish move that proves one thing: such investors need much more guidance and advice than they are getting.

I hope this blog helps you sort out the proper use of the most common asset classes. Investing from a position of strength enables investors to prudently select asset classes and holdings in a much better frame of mind. It takes patience and persistence, but you can certainly prudently allocate assets for your circumstances and the prevailing economic and investment climate using such a methodology. If you would like to talk to one of our advisors to further discuss your portfolio, call us at 303-721-7000 or email us at request@janiczek.com.