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Focus on the goal and the investments will fall into place

Professional golfers within 150 yards of the green focus only on the target (the flag stick) and forget any and all of the 21 so-called “swing thoughts” that come into play to create the perfect shots we see on television. In the same vein, mastering the mental challenge of investing by focusing on a goal is more important than understanding all the qualities and uses of various investment products. Gaining a clear picture of an investment goal is a first step, and what follows is a march to achievement that may, or may not, take place with certainty.

The time for tariffs may come and go

So, a participant in one of our 401(k) plans with more than $1 million in her account called me in a panic to ask if she should roll all of her money into a money market fund. She was rattled by the consequences of the trade war that is now underway. From what she had been hearing, it sounded like the world was going to hell in a hand basket. This is true of any perceived threat to market resilience.

The afterglow of giving burns brighter with a tax deduction

The new tax law changes the dynamic for charitable giving, as many people’s altruistic efforts will not receive the same level of government encouragement — meaning, of course, that the tax deduction for some is not what it used to be. Studies show that this doesn’t matter as much as we might think, but it is still a factor for contributions beyond what just the warm glow of giving would have prompted. A short overview of some of the basic giving vehicles may offer a starting point for those wondering how their past giving patterns may be affected.

Is the China syndrome worth the risk?

With China in the news on so many fronts, I was prompted to check out some of the mutual funds that are categorized as “China funds.” Whoa! Some have gained almost 40 percent during the past 12 months. It’s clearly an economy that is growing faster than ours, and we sell a lot of products to them — starting with cars whereby General Motors sells more in that country than it sells domestically.

Tightwad or spendthrift – question for retirees

Anticipating the day when my job income stops and I have to depend on investments and retirement accounts for income is NOT something I’m suited for given my background and temperament. I’m always worried about what can go wrong, and I like to have “back-up.” This came up in a discussion with my wife (a retired licensed therapist) when she caught me reading Bob Rotella’s book “Golf is Not a Game of Perfect” — for the umpteenth time.

The revolving door of investment success

To create some investment excitement, and to help the greeting card industry, let’s designate something called “Losers’ Week.” This would be a week set aside to celebrate the fact that yesterday’s perennial fund losers have finally begun to stir. We may soon be disappointed once again as we enter what is traditionally the “summer doldrums” of a seasonally weakening stock market, but for the moment, we have something to be happy about if we’ve been patiently holding, say, energy, precious metals or China funds — to pick a few examples.

Investment risk and some antidotes

Professional bond investors are canaries in the mine shaft when it comes to predicting long-term future movement in the economy. Unlike economists or pundits, bond traders are playing with real money. Long-term bets on the future of interest rates can move today’s bond values up or down significantly — prices drop if market interest rates rise and prices rise if market interest rates drop — like a rope over a pulley. Added to this is the fact that bond investments are purchased with borrowed money to a greater extent than stocks, and leverage, of course, can work both ways.

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