We are very thankful this Thanksgiving season. That might seem a little counterintuitive in a market that has been down consistently from January through November. However, markets sometimes need to take a sober shower and wash off overtly high valuations before they can move onward. One might see 2022's cleansing in a historical context that suggests positive returns are on the horizon.
We are thankful for Eugene Fama, a Nobel Laureate known as the “Father of Modern Empirical Finance”, who synthesized a body of work that laid the foundation for efficient-markets theory. Fama says that with the exception of insider trading (a federal crime), markets process all knowable information into its prices. The implication is that nobody truly has sustainably more knowledge about the markets than the markets themselves. Fama’s work is critically important. At OnTrack Wealth Management, Fama's findings sharpens our focus. We do not waste time trying fruitlessly to outperform the market. Instead, we look to take what the market gives us – which is mostly good and sometimes not. With critical time saved, we spend countless hours looking at ways in which we can remove or reduce fees and taxes for our clients. This is our winning formula for outperforming the market…net of fees and taxes that is.
We are thankful for 100 percent retention of our clients from day one of our existence. This is especially meaningful in a year that has occasionally presented real challenges. It’s not lost on us that clients are the life blood of our firm, and we are thankful every day for their trust…
We are thankful for good health, friends, and family!
We are thankful for the fans of our blog and hope that everyone reading has a wonderful Thanksgiving Day!