Stay Focused

Appropriate phrases for the current global financial situation as created by President Trump:

“It’s a riddle wrapped in a mystery inside an enigma!” – Winston Churchill

“The dumbest trade war in history!” – The Wall Street Journal (stated many times recently)

“Canada? We’re picking a fight with our most reliable and pleasant friend, the labradoodle of allies?!” – Jon Stewart

Personally, I like the last one the best! And frankly, there is an argument for some levity right now. But, the reality is we are seeing something we have not seen in generations.

Yet while these quotes and thoughts may be interesting, the really relevant consideration is how to invest in the midst of it? There are three key points I’d like to share, that are also central to our investment management strategies.

1. Stay away from investing heavily in oil & gas, lumber, mining, steel & aluminum, and manufacturing. This will not fully protect you, but it will greatly reduce your exposure to the trade conflict.
2. Focus on companies that are leaders in their respective industries. Companies with large capital positions, and low debt. Companies with strong positive cash-flow and a history of paying dividends. When times get hard, “cash is king”, and you want to be invested in companies with strong balance sheets.
3. Do not make investment choices on a whim; stay focused on the long term. Companies exist to be profitable, and they will find the route to remain as such. Change is generally a short-term issue. If we remain consistent, companies will adapt and find the new way to profitability.

The first point was an area we identified as a concern a few months ago and over the market changes in the past few days we were happy to realize our exposure was/is minimal. The second two points are always core areas of focus for us.

Bottom line, in the midst of chaos be sure stay focused on your real long-term investment goals and with time, the noise is not as loud.

The RGF Integrated Wealth Management James E Rogers Leadership Scholarship

The RGF Integrated Wealth Management James E Rogers Leadership Scholarship seeks to recognize an individual who demonstrates positive leadership impact in the community. We believe in the right to education and want the next generation to have the opportunity to pursue their higher education goals.

Scholarship Amount: $5,000

For application instructions and more details, please go to /JER-scholarship