Don't touch your pi [Certain Times]

Happy pi Day! A day like today comes along only once a century.

Today’s date, 3-14-15, looks a lot like the decimal quotient one finds after dividing the circumference of a circle by it’s diameter: 3.1415.

So why am I talking about pi in a newsletter devoted to the financial security of physician families?

I’ll tell you why…

I’ve been getting a lot of calls lately from physicians who want to move their money around.

“The returns don’t seem very good. Shouldn’t we DO something about it?” one asked.

My answer: No.

I wanted to tell him why but I was low on personal battery power and so I came up with an unintelligible answer featuring the words “relative valuation.”

That… as my daughter would say… was a fail.

So today, with my creative juices refreshed, I am back in the office on a Saturday night to boil it all down for you, easy as pie.

The returns on a globally-diversified portfolio have been pretty ho-hum lately, and they’ve definitely been worse than returns on an all-US equity portfolio. And even though they’ve been positive, global returns seem bad by comparison.

That’s because the foreign equity markets—Europe in particular—have had a dismal time while US equity markets have been on a total tear, tripling since the bear market low we hit just five short years ago.

They’re in a recession over there, mired in a tug-of-war over the Greek debt.

I know, it looks bad. But they’re doing some interesting things across the pond, and those things look an awful lot like what the Federal Reserve did here to get our economy going again.

So why on earth would you knowingly sell cheap securities to buy expensive ones?

You wouldn’t… unless you didn’t know any better.

If your portfolio is well balanced and globally diversified, keep your hands off of it. Your family will be glad you did.

W. Ben Utley CFP® Attending Advisor & President Physician Family Financial Advisors Inc. Call: 541-463-0899 Be certain.™

PS: If your portfolio looks less like a pie and more like a pile, contact me.