Long-Term Strategies

​Three months ago, sitting down to write an article for the newsletter, UM was preparing to play for the National Title, and the Detroit Lions were getting ready to play in a playoff game.  Today, the first two rounds of March Madness have been completed, and my bracket in the Majestic Financial challenge is already busted.  The Otsego JV baseball team (I am an assistant coach) plays their first game of the season against Allegan, and I hope I have packed enough layers of clothing.

It may seem like my life revolves around sports, and to an extent that’s true.  But what fascinates me so much about sports is the same thing that fascinates me about investments – options specifically.  Sports are simple at their core – you play a game and one side wins, one side loses.  The opposing teams play by the same rules, share the same playing field, and deal with the same arbitrators of justice (referees or umpires).  Theoretically, there should not be any upsets since the games should come down to a simple matter of skill.  However, the strategies and momentum are what makes sports…well sports!  An Oakland University (without a single top recruit) can beat the storied University of Kentucky (starting 5 high school All Americans) by showing a defense that they didn’t play all year and feeding a hot 3-point shooter.  The Detroit Lions can make it to the NFC Championship game by running variations of blitzes that were never shown during the regular season.  What also intrigues me is that the upsets very seldom turn into championship stories.  Oakland lost (in overtime) their next game, the Lions lost to the 49rs.

Investing is the same situation, just more serious in nature.  The theory is simple – buy low, sell high.  Buy quality companies, maintain the proper asset allocation, increase your contributions when you can.  Easy, right?  But the strategies are endless and should be based on individual needs, risk tolerance, and goals.  Are we selling call options, buying put options, tax harvesting?  Are we selling or buying into a stock split or stock buyback?  Are we making a trade to potentially take advantage of coming interest rate cuts, and are we using options for this strategy?

At Majestic Financial, we are not investing for clients to make a quick buck, just like I wasn’t putting money on the Oakland University Grizzlies to make it to the Final Four.  We want to use strategies designed to help maximize returns that our clients want and need without increasing risk.  Our strategies may seem extreme while you are on the phone, in a zoom meeting, or talking with us in person and we are explaining them.  But that is only because we are not afraid to find a different way of investing than you may have done in the past.  As we head into the Presidential election, potential rate cuts, and continuing wars around the globe, remember that we are here to work with and for you.  We want you involved in the plan and decisions. 

Unlike my NCAA bracket, we want to help you succeed for the long term.  Give us a call and let’s talk strategies.

Written by Sean Budlong, CFP®, AAMS, Chief Executive Officer, Majestic Financial, Financial Consultant, RJFS
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Disclosures:
*Any opinions are those of Sean Budlong and not necessarily those of RJFS or Raymond James. The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur. Investing involves risk and you may incur a profit or loss regardless of strategy selected.