History is an Important Tool.
We have to learn from the past and acknowledge that the current economic and investment environment has much in common with where we’ve already been. U.S. and world governments will use nearly identical fiscal and monetary policies to deal with changing conditions and the investing public reacts with greed and fear. Too often, investors don’t take sufficient time to appreciate economic and investment history, which in turn produces the same financial mistakes as the past. The phrase, “it’s different this time” regularly leads to ruin. We long ago decided to respect the past. Yes, there are differences, but there are many, many similarities.
Prices Generally Move in Long Trends, Guiding Us Toward What We Can Expect From Economic and Financial Data.
Technical analysis is the study of past movement in investment prices and should be a cornerstone of market and investment research. Although some investors may view price charts as having little forecasting value, we believe quite the opposite: technical indicators (such as the 200-day moving average) can and should be used to identify the direction of current trends, as well as for potential changes in market conditions.
Investment Risk is Relative.
All people, regardless of age, education, background and personality, have different tolerance for financial risk. Not everyone is cut out to be an active investor and that’s perfectly acceptable. As long as an investment portfolio matches an investor’s temperament, long-term investment success can be achieved. There is no one best investment that will work for every investor. What’s important to understand from the beginning is that investments essentially fall into one of two categories — owning for long-term growth or loaning for investment income. Common stocks, REITS, bonds and preferred stocks all have strengths and weaknesses and we’ll help you understand how they may perform in various economic conditions.
Winans Investments is an investment adviser in Novato, CA. Winans Investments is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Winans Investments only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Winans Investments current written disclosure brochure filed with the SEC which discusses among other things, Winans Investments business practices, services and fees, is available through the SEC's website at: www.adviserinfo.sec.gov.
PAST PERFORMANCE IS NOT AN INDICATION OF FUTURE RESULTS
