Social Media – Helping or Hurting Your Investment Behavior?

During a recent client meeting we ended up on the subject of social media, and the effect it can have on a business. Unfavorable press coverage led to an echo of bad news on social media among this client’s customers, and it was continuing to harm his business with no end in sight.

I was curious about the public’s persistent reaction, and why he believed the story was still in the news cycle many weeks later. Was his customer base being fickle? Were competitors spreading false and redundant stories? His response: social media. Once a key marketing strategy for his company, social media has quickly turned into a sore spot.

He explained that as the public hears about small incidents, they turn to social networks to share the information, which is then amplified and repeated, creating a snowball effect. Suddenly isolated incidents create nation-wide panic. The small problems become bigger than expected and a stampede occurs.

As a financial advisor I started thinking about how this applies to investors. Consider both DIYers and new investors, those who are not deeply grounded, long-term, experienced investors. Could social media be driving investors toward short-term thinking? Could it be the volume and loudness of media in general? Could this be pushing investors to make choices detrimental to the longevity of their wealth?

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Steve Booren

Steve Booren

Steve started his investment career in 1978 with the NYSE investment firm EF Hutton, working in the environment of a large investment company. Desiring to provide clients with unbiased investment advice, he founded Prosperion Financial Advisors. Learn more about Steve here.

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Progress in 5’s

I think daily minutia often blurs our capability to see the remarkable progress humankind has and is making. If we take a moment to think back 40 years, back to the time many of you started investing for the first time, we’ve seen tremendous advancements across the board. From energy to medicine, transportation to communication, or any one of a hundred other fields, advancement had been astounding.

But as investors it’s important to see the forest through the trees. So let’s break it down and consider a few special years – years that end in five.

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Steve Booren

Steve Booren

Steve started his investment career in 1978 with the NYSE investment firm EF Hutton, working in the environment of a large investment company. Desiring to provide clients with unbiased investment advice, he founded Prosperion Financial Advisors. Learn more about Steve here.

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2016: A Year of Drama-teries

As we look back at 2015 one word comes to mind: volatility. Though the swings felt dramatic, the S&P 500 Index actually had less volatility than what I would call a typical year. The peak-to-trough swings during the year were separated by 12.4%. Compare that to an average intra-year change since 1975 of 14%.

So why did a rather average 2015 feel like such a rollercoaster? Upon tripling in six years since the financial crisis in 2009 lows, the stock market “rested”. But media needs a story to tell, so they focused on three key targets: China, the Federal Reserve, and oil. They created Drama-tary.

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Steve Booren

Steve Booren

Steve started his investment career in 1978 with the NYSE investment firm EF Hutton, working in the environment of a large investment company. Desiring to provide clients with unbiased investment advice, he founded Prosperion Financial Advisors. Learn more about Steve here.

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Facing Volatility

Over the last few years, we have faced a variety of challenges in the market. Times of stress spark the need for discussion, reassurance, and often, historical context. In 2013, we started the year worried about the impending fiscal cliff, and later watched as the market had its “taper tantrum” over uncertainty regarding the Federal Reserve’s (Fed) actions. In 2014, the focus was on the harsh winter’s impact on the economy, and the market sell-off due to the Ebola outbreak and rise of the Islamic State militants. And last year, second-half fears triggered by the decline in oil prices, weakness in manufacturing, and a slowdown in China captured our attention.

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David Morrison

David Morrison

David uses Values Based Financial Planning to align your financial choices with your most important goals and your most deeply held values. He has a comprehensive process to consolidate, coordinate and simplify your financial life in a way that brings you more confidence and clarity about your future. Learn more about David here.

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The Power of Growing Dividend Income

We create and communicate ProsperOn’s to deliver timeless, valuable wisdom to our clients, with the hope to provide greater clarity, capability and confidence. In other words to help people be better investors. We hope these are valuable to you and your family.

By now most of you have heard us preaching the gospel of our Growing Dividend Strategy. At the very core of our investing philosophy is the notion that our clients invest for income. That income may be for today, or needed sometime in the future. But the crux is almost always income.

A focus on income invites unique challenges and opportunities. For instance, the largest challenge is a continually growing income that outpaces inflation, the “consistent hill” that always needs climbing. Without growing income the purchasing power of your money will decrease over time, along with your standard of living.

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Steve Booren

Steve Booren

Steve started his investment career in 1978 with the NYSE investment firm EF Hutton, working in the environment of a large investment company. Desiring to provide clients with unbiased investment advice, he founded Prosperion Financial Advisors. Learn more about Steve here.

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Bird Watching and the Emperor’s Robe

We create and communicate ProsperOn’s to deliver timeless, valuable wisdom to our clients, with the hope to provide greater clarity, capability and confidence. In other words to help people be better investors. We hope these are valuable to you and your family.

In August of 2015 the financial markets seemed to do what nobody likes but nearly everyone knows is normal – they “corrected”. A more accurate description of a market correction is when prices fall by 10% in a short period of time. That short-term decrease can cause panic or an attitude that investing is “risky”. Panic, driving either buying or selling, may be a poor strategy destined to cause investors to lose money.

I believe emotion has moved to the forefront of public sentiment, prompted by a very loud media. This emotion is causing wild short term volatility, resulting in the frequent ups and downs we’ve been experiencing. But let’s consider what I believe to be the leading causes of these swings: the August correction, Chinese instability, and the possibility of a Fed rate hike.

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Steve Booren

Steve Booren

Steve started his investment career in 1978 with the NYSE investment firm EF Hutton, working in the environment of a large investment company. Desiring to provide clients with unbiased investment advice, he founded Prosperion Financial Advisors. Learn more about Steve here.

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The Good in the Gray

It is fascinating to watch and listen to the narrative of media within our country. We have a tendency to take sides on any given issue, resulting in a constant battle between good and evil, black and white, up and down. Then, when citizens attempt to turn off the noise, both sides yell louder in an attempt to keep their viewers’ attention.  But the increasing drone of worthless drivel has the effect of drowning out the good news, the important news, the news we should actually be paying attention to. Today I want to walk through some of those news items that have really interested and inspired me.

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Steve Booren

Steve Booren

Steve started his investment career in 1978 with the NYSE investment firm EF Hutton, working in the environment of a large investment company. Desiring to provide clients with unbiased investment advice, he founded Prosperion Financial Advisors. Learn more about Steve here.

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What the Wright Brothers Taught Us About Government Innovation

“Human flight by a machine will occur between one million and ten million years from now,” estimated the New York Times on October 9, 1903. Coincidentally, on that very day, Orville Wright wrote in his diary, “We started assembly today.”

Ten weeks later, the Wright Brothers flew!

The New York Times mistaken prediction was prompted by a spectacular failure. Two days previously, Smithsonian scientist Samuel Pierpoint Langley attempted to launch an aircraft from a modified houseboat on the Potomac River. It fell to the water like a brick.

After repeated efforts and modifications, he gave up on aviation all together.

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Steve Booren

Steve Booren

Steve started his investment career in 1978 with the NYSE investment firm EF Hutton, working in the environment of a large investment company. Desiring to provide clients with unbiased investment advice, he founded Prosperion Financial Advisors. Learn more about Steve here.

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What Postage Tells Us About Inflation

July 17, 2015 is the 40th anniversary of the linkup between America and the Soviet Union in outer space. This was an amazing feat back in 1975, considering the Cold War had not yet even ended; rather it marked a bold step by two global adversaries, willing to dock two space crafts in outer space – and to pursue the common quest for understanding of ourselves, and the planet we all inhabit.

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Steve Booren

Steve Booren

Steve started his investment career in 1978 with the NYSE investment firm EF Hutton, working in the environment of a large investment company. Desiring to provide clients with unbiased investment advice, he founded Prosperion Financial Advisors. Learn more about Steve here.

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Mid-Year Outlook 2015: Some Assembly Required

Few things can dampen the excitement of seeing the delivery of a long awaited package on the porch than three words — “some assembly required.” Whether it is navigating the confusing instruction manual, sweating through the complicated assortment of parts, or the sinking feeling that you don’t have the right batteries in the closet, sometimes the hard work comes after the delivery truck has driven off. And like any complex assembly, whether it’s a 1,000-piece puzzle, a kid’s shiny new bike, or a plan to navigate tricky economic times, the amount of pieces to collect and put together can be daunting. But the assembly can certainly be made easier with a well-formulated plan, the right tools, and the LPL Research Midyear Outlook 2015: Some Assembly Required as the blueprint for success.

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