Position your portfolio today for future success

For many, a down economy typically translates into a downer mentality. The volatile market can be overwhelmingly discouraging, which leads business leaders to sit in their office with their head in their hands, saying, “Tell me when it’s over.”

The good news is it doesn’t have to be this way. A less-than-ideal economy can lend itself to a better-than-ever situation. All you have to do is plan for it.

The situation
There’s no denying the economy is in trouble or that people are seriously struggling. The market has been obliterated over the past few months, coming in at levels it was 11 years ago. The world has been turned upside down.

The market, essentially, has gone through nature’s equivalent of the “100 year flood.” Meaning, that this downturn was inevitable — it had to happen. And because of that, it’s more important than ever to be alert, active and aggressive. That deer-in-the-headlights mentality isn’t going to do you any favors.

Stocks have gone down, and they’ll go back up. We just don’t know exactly when. So it’s essential to evaluate your options and look to the future.

The emotion
The market is often described as psychology in motion. It’s all based on confidence. For example, going into the election, consumer confidence was down. The politicians were telling people how bad things were, and they were scaring everyone to death.

Then we elected the new president, and consumer confidence went up 11 points — that day. President Obama hadn’t done anything yet, but the perception of what he might do positively impacted the consumer confidence numbers.

The bottom line, is when confidence leaves the system, everything comes to a standstill. People stop spending because they’re scared — despite the fact that they still have a job and their paycheck hasn’t changed.

The right move, however, is to do the opposite. Normally, we have to scour for the kind of deals you can find in today’s market. But now the situation is akin to someone pulling up with a dump truck full of bargains and leaving it there for the taking.

The planning

Taking advantage of the incredible bargains requires strategy and forethought. You can leave it to random luck, or you can strategically position yourself for great returns. People will go to an accountant for bookkeeping, an attorney for legal issues and a doctor for health. But when it comes to financial matters, they think they can do it on their own. You can sometimes get away with that in an easy market, but at a time like this, it’s essential to hire a professional.

Here at Paragon Wealth Management, we offer a free portfolio review and analysis for investors with $200,000 or more in their account. It’s a way to make lemonade out of lemons. Now is the time to position yourself in a way that allows you to capitalize on an opportunity that rarely comes along.

The views in this column are my opinions. They are not intended as a forecast or a guarantee of future results.

After graduating from BYU, Dave Young started his career as an entrepreneur. He successfully started 12 businesses in the early 1980s. In 1986, he decided to sell his businesses and invest the proceeds, but he was unable to find an investment company that met his needs. As a result, later that year he began managing his own portfolios. Young continued researching methods for investing that would produce the most profitable returns. He believed in his methods so much that he invested his life savings and started Paragon. More than 20 years later, Young continues to invest and research ways he can improve his business to serve clients. He has been interviewed by BusinessWeek, CNBC, the Wall Street Journal, the Deseret Mornings News and other national and local media. Paragon also received the Best of State Award in Financial Services for 2008. Visit www.paragonwealth.com or call (801) 375-2500 to learn more.

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