Michael J. Ling, CFP®
"Understanding the Differences between Normal and Non-normal Economic and Market Cycles"
Clients have heard that “this time it’s different” both with market advances and declines. This often prompts them to invest in hot areas such as the technology industry in the mid and late 1990s or the real estate market in the early to mid 2000s. They then sell when the specific market declines: the classic “buy high and sell low.” This attitude creates challenges for advisors who want to develop a sold investment strategy and maintain it regardless of the short-term market fluctuations.
However, what if it is different this time? By juxtaposing the economic and political conditions of the 1930s and 1970s we will better understand the differences between normal and non-normal cycles. We will also review how recent bubbles in technology and real estate may prompt slight adjustments when using tactical asset allocation.
Michael J. Ling, CFP®
Michael is an economics graduate of the University of California at Berkeley. He is a Certified Financial Planner LicenseeTM. He founded Berkeley, Inc. in 1996 after working for two years with American Express Financial Advisors and IFG Network Securities, Inc. Michael has fourteen years’ industry experience, which includes comprehensive financial planning, retirement planning, and investment management. He has served as president of the Cal Berkeley Alumni Association of Idaho, the Treasure Valley Economics Association, United Cerebral Palsy of Idaho, Life’s Kitchen, and Capital Matrix. Berkeley Inc. has approximately 190 clients and manages $140 million. The company’s investment philosophy is the weak form of modern portfolio theory. As such they use a combination of passively and actively managed mutual funds along with select individual stocks, REITs, Royalty Trust and Master Limited Partnerships.
