By Warburton Capital | January 8, 2016 | 0 Comment
IN THE NEWS: Our firm’s founder, Tom Warburton, was recently featured in the Tulsa Business & Legal News regarding his thoughts the volatility in the stock market so far in 2016. This article hits the high points of our thoughts on the matter, but if you would like to discuss more in-depth – or would like a second opinion on your investments in light of uncertainty in the New Year – please click to Contact Us Here!
Excerpts of the article are below:
…Tom Warburton of Warburton Capital Management doesn’t put much stock into what the pundits have to say.
“I’ve been watching CNBC. I watch it every morning and I love watching the pundits speculate and forecast,” he said from his office at 15 E. Fifth St. in Tulsa. “Basically, some of them have said 2016 is going to be flat, some said down 5 percent, one guy said it should be up 15 percent.
“So there you go — from down 5 percent to up 15 percent, that’s a pretty wide margin. My view when I hear these people is they are all guessing.”
He says while it’s fun to listen to, investors can’t believe the speculation because no one really knows what is going to happen.
“I expect the markets to still be open Dec. 31, 2016,” he said. “Whether they will go up or down, I have no clue. Over the course of the year, I have no idea what news is going to come into the headlines that is going to move the markets — accounting frauds, new products — I don’t know. If I could predict the news, I could predict the markets.”
Warburton expects the markets to fluctuate over the course of the year, and over the long haul he expects about a 10 percent rate of return to the patient investor.
However, in something as short as 12 months, he would disregard the opinions of anyone who thinks they know.
And, investors should never react to the markets, according to Warburton.
“I think investors should react to their personal set of circumstances,” he said. “Always live within your means, and be saving a little, if you get a pay raise, you should save a little bit more. If you win the lottery or get an inheritance, you should save a major portion of that money. Our goal is to make work optional, and the only way you make work optional is to have a big pile of acorns.”