Catch the FirstWave
By: Tom Kirk
I have been surfing for a long time, since 1970. I named our wealth management firm FirstWave Financial because surfing and investing have more in common than you may think.
When you are sitting on your surfboard, staring toward the horizon, watching for your next rideable wave to appear, a funny thing can happen. There you are; waiting and watching, watching and waiting; and you get restless. When you look to your left or right, it can appear that waves are breaking better just a few dozen yards down the beach. So, you lay down on your board and paddle hard and fast to move yourself into position to catch those better breaking waves. But when you get there, they aren’t breaking anymore. The set of waves you saw has ended. As you sit up on your surfboard to catch your breath, you look back and see the waves are now breaking where you just were. Frustrated, you debate in your mind whether to stay where you are now and wait for the next set of waves, or paddle back to where you were. The result is lots of paddling back and forth, but not much surfing.
The same thing can happen with your money.
Have you ever invested your portfolio in a certain way or in a certain part of the market and you become restless, wondering if there is a better way? Then, when you look around and talk with other people, it appears everyone is making a killing in _______________. Fill in this blank with your choice from many possibilities; real estate, tech stocks, gold, bit coins, etc. So, you move some or all of your portfolio into this “hot” area of the market. But you don’t capture the much hoped-for performance because you are late, you missed it, just like with surfing.
But with your money it can be much worse than with surfing. With surfing you are never lower than sea level, even if you miss the waves you think you saw. It may now be flat, but you aren’t below sea level. But if, when you move your money, you buy at the top of a market performance wave and ride it back down, you can suffer a real and substantial loss of capital. You are then below sea level. You must now decide whether to hold your position and wait for the next performance wave, or move your money again. But where? When? Unfortunately, many investors never capture the returns the market has historically delivered because they are always chasing performance and a chronically late to the party.
That is why at FirstWave Financial we emphasize broad diversification through investment in publicly traded stocks across the global market place. That way we are more likely to be in position to catch the FirstWave of performance while experiencing less volatility risk because we are so well diversified. Unlike surfing, where you can only catch waves that break near you, we can catch the performance waves wherever they occur in the global market place. No one knows precisely where the next wave of performance will occur. But you can’t wait until it appears in the Wall Street Journal or some other source of market research to move your money there. By then it is too late.
Contact one of our WealthCoaches at FirstWave Financial today to find how you can take advantage of our proven method of surfing the waves of performance the market has provided to investors who don’t chase performance but instead position their money strategically.