Author: Hannah Butcher

I'm a Portfolio Manager at Meyer Capital Management.

This One Concept is Critical to Investing Success

On By Hannah ButcherIn Investing, Markets

Making sense of stock price movements is a challenge for all investors. Share price fluctuations often seem illogical…they go up when we think they should go down, and they go down when we think they should go up. Here’s why.

Capital markets are forward looking mechanisms, meaning at any given moment, they reflect a certain set of expectations for the future. From GDP, to Federal Reserve monetary policy, to corporate earnings, etc., market participants en masse set expectations for nearly every economic measure. Markets move when actual results deviate from these expectations. If results are better than expected, prices often move higher and vice versa.

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Investors’ Handling of Market Corrections is Improving

On By Hannah ButcherIn Markets, People

Humans are hardwired to avoid danger, including financial dangers. This instinct causes many investors to panic and make costly mistakes during periods of market turmoil.  A Fidelity study, however, found several positive trends among investors during the recent 4th quarter market correction. It is encouraging to see these trends and, since market corrections occur regularly, it is crucial investors repeat the actions in future market downturns.

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John Meyer Recognized for Prowess in 2018 CBC Stock Picking Contest

On By Hannah ButcherIn People

MCM’s own Director of Portfolio Management, John Meyer, scored a podium finish in the recently completed Cincinnati Business Courier 2018 Stock Picking Contest! John finished in the top 2 of 28 Cincinnati-region investment professionals. The average total rate-of-return of his 5 stock picks was +10.4% in a year when the S&P 500 Index was negative -4.4%. That’s +14.8% total outperformance versus the broader market. John’s top gainer was Veeva Systems Inc. (VEEV), a cloud-based life sciences software company. Veeva gained +58.8% in 2018.

The 2019 CBC Stock Picking contest is already under way and John is going for the win this year.

2018 CBC Stock Picking Contest

 

 

 

Don’t Fear the End of the Current Bull Market

On By Hannah ButcherIn Investing, Markets, Personal Finance

Investors of a certain age recall all too well the end of the last bull market. From late 2007 to early 2009, the S&P 500 Index fell 56% and lost a staggering $11 trillion in market value. That painful memory has many of today’s investors wondering how long the current bull market will last and how they can protect their portfolios from its eventual, inevitable demise. The simple answer, surprising as it may sound, is “don’t worry about it.” Rest assured, I have not lost my mind.

Study after study shows that most investors buy-high and sell-low. This is because they’re convinced they can correctly identify the beginnings and endings of bull and bear markets when, in fact, they can’t… no one can. As a result, the millions of Americans who sold in 2008 when stocks were low missed out on the extraordinary gains that began in early 2009 and persist today.

072318 Market Bottom.PNG

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A Hazard to Your Wealth

On By Hannah ButcherIn Investing

When I was an undergraduate studying finance, the idea of buying and selling common stocks sounded thrilling. It captivated me. I read accounts of day traders making millions, supposedly, by just sitting at their computers and buying low and selling high. How easy does that sound!? All I needed was a handful of well-placed trades each day and I was sure to be retired by age 30. Yet, as I delved deeper into the world of finance, and subsequently began my career as a professional portfolio manager, I learned those day trading stories were far from the reality of successful long-term investing.

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The Portfolio Diversification Fallacy

On By Hannah ButcherIn Investing, Trading

One of the most widely recognized investing principles is portfolio diversification. Surprisingly, novice and seasoned investors alike often misinterpret the true meaning of diversification. A common misconception is that diversification means no more than investing in many different companies. Subscribers to this fallacy may fill their portfolio with high profile glamour stocks, for example, that appear in the headlines day after day. Akin to a collection of unrelated shiny objects, these investments typically offer few of the benefits of diversification. A well-diversified portfolio bears little resemblance to a random collection of shiny objects.

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Ode to Anderson

On By Hannah ButcherIn Investing1 Comment

Forbes Magazine’s 2016 list of Best Cities for Young Professionals ranks Cincinnati a very respectable #15 in the nation, even among hot-spot regions like San Francisco, Silicon Valley and Denver. As a young professional, this is exciting confirmation of what I already knew. But as Cincinnatian’s know, each neighborhood here is its own organism and some areas are more attractive to young professionals than others.

When I was nearing graduation from Xavier University, many of my peers were clamoring for job offers in the popular and trendy Over-The-Rhine (OTR) neighborhood. OTR is charming with lots of character and is within easy walking distance of a multitude of unique restaurants, clubs, and bars that draw crowds of young professionals at lunchtime and after work. Other XU grads opted for jobs in the central business district at one of Cincinnati’s 10 Fortune 500 companies. I was an outlier (I prefer to think trendsetter) when I accepted a position in the suburbs, namely Anderson Township.

My decision to work in Anderson proved to be an excellent choice. On the surface, there are obvious positive attributes — beautiful parks, close proximity to highways, and a pleasing mix of city and rural life, to name a few. Once I started working here, though, I learned Anderson has even more to offer those who dig below the surface.

anderson-township

 

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Limited Time Opportunity for NEW MCM Clients

On By Hannah ButcherIn News, People

For a limited only, new MCM clients who qualify are eligible for one full-year of free equity and ETF trade commissions, making now a great time to refer someone you know!

Personal referrals are MCM’s primary source of new business growth. We are actively seeking to grow so that we can bring more of MCM’s great benefits and services to more people. We are very thankful for each referral we receive and for all of our existing clients who joined the MCM family via referral. If you appreciate someone who shared MCM with you, it’s likely someone you know will also appreciate the gesture. So…share the wealth, figuratively of course, by referring someone you know. They’ll be grateful, and we will too.

4% Rule: Made to Be Broken?

On By Hannah ButcherIn Investing, People, Personal Finance

A common concern among investors is running out of money in retirement. Combating this concern, the “4% rule” is widely presented as a simple way to help your money last. Created in 1994 by financial planner William Bengen, the 4% rule says if you withdraw 4% of your nest egg each year, adjusted annually for inflation, there is a 90% chance your money will last at least 30 years. Yet despite its notoriety, the 4% rule is not without issue.

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