Some investors believe that financial advisors add value by using their superior knowledge or analytical ability to generate superior returns.  In July 2000, Fortune featured an article titled “Let Them Make Your Rich”.  They selected superstar managers in each market sector and asked for their best stock pick.  One year later, out of 28 stock picks, 11 were up and 17 were down.  During this same period, the S & P Index lost 9% but the selected stocks sank about 14%.  Moving your investments around may cause some investors to believe their financial advisor is helping them but, in reality, it is a fool’s errand and the added value is negative.

The market has earned over 10% in the past 80 years.  During that time, there have been dozens and dozens of bad markets.  In 2001 and 2002, the market drifted down for the better part of two years but 2003 was a spectacular success.  Investing is a marathon – not a sprint!

The best way for us to add value is to give you a successful investing experience which means that we help you minimize the stress you feel about the investment process by keeping you focused on long-term objectives.

No one knows how long this negative market will last but we do know that short-term thinking can distract us from a successful long-term investment experience.

Sincerely,

Gerald E. Mehlich

(c) Mehlich, Roegiers, Goldin & Company

www.mrgcpa.com