• Retirement Plan Login
  • InnoVue Login
  • Privacy Statement
  • Contact Us
facebook
twitter
  • Asset Management & Trust
    • Services
  • Retirement Specialists
  • Consulting
  • Blog
  • Our Team
    • Consulting Team
      • Jeffrey Asher, CFA
      • Gregory Baum, CFA
      • Shannon Carter, CFP®, IACCP®
      • Cathy Friday
      • Andy Hood
      • Peter Junkin
      • Terri McCoy
      • Matt Murphy
      • Steve Replogle, CFA, CPA, CTFA
      • Wendy Wilkerson
      • Mark Williams, CFA
    • Corporate Team
      • Cathy Friday
      • Matt Murphy
      • Wendy Wilkerson
      • Mark Williams, CFA
    • Operations Team
      • Kristi Carter
      • Kayley Carver
      • Debbie Sinard
    • Retirement Services Team
      • Stephanie Corder
      • Dani Gayski
      • Kimberley Horne
      • Nicole Leyva
      • Taylor Schubert
    • Trust Administrative Team
      • Jordan Horn
      • Megan Kershaw
      • Christina Moore
      • Steve Replogle, CFA, CPA, CTFA
      • Karen Smith-Grant
    • Trust Investment Team
      • Jeffrey Asher, CFA
      • Gregory Baum, CFA
      • Vicky Bowron
      • Shannon Carter, CFP®, IACCP®
      • Andy Hood
      • Peter Junkin
      • Steve Replogle, CFA, CPA, CTFA
      • Mark Williams, CFA
  • Financial Calculators
    • Social security retirement income estimator
    • How much will I need to save for retirement?
    • How will payroll adjustments affect my take-home pay?
    • What would my 401(k), 457, or 403(b) Plan be worth?
    • Are my current retirement savings sufficient?
    • How should I allocate my assets?
    • What is my risk tolerance?
    • How much should I save to reach my goal?
    • Compare a Roth 401(k) to a Traditional 401(k)
    • What is the impact of increasing my 457 Plan contribution?

The Olympics

by
0 Comment

The Summer Olympics are just a memory at this point.  But, I still can visualize some of the races and events that unfolded over the two weeks in July and August.  Some of the events had plenty of hype leading up to the Olympics.  Would Usain Bolt take back the title of the World’s Fastest Man in the 100 meters – after losing to his countryman earlier in the year?  How many medals would Michael Phelps win this time?  Would Misty May-Treanor and Kerri Walsh-Jennings continue their utter dominance in women’s beach volleyball?
These two events and the related athletes can be likened to investment managers, in a sense.  We look at these athletes and make assumptions that they are going to win every race they enter.  This is based on their past history of winning races at the Olympic level – despite the odds of repeating over and over again are against them.
The same can be said of investment managers.  Davis Advisors did a study of “top performing large cap investment managers from January 1, 2002 to December 31, 2011 who suffered a three year period of underperformance.”  The results show that:

  • “96% of these top managers’ rankings fell to the bottom half of the peers for at least one three year period.
  • A full 68% ranked among the bottom quartile of their peers for at least one three year period, and
  • 35% ranked in the bottom decile for at least one three year period.”

 
The takeaway here is that even the best performers often suffer periods of underperformance.  Just ask Michael Phelps, who didn’t win as many events as he hoped – or was predicted to win.  Or, just ask Usain Bolt in the lead up to the Olympics when he lost in the event in which he owned the world record.  Even the infallible Misty May-Treanor and Kerri Walsh-Jennings – who hadn’t lost a set in women’s beach volleyball in any Olympics they competed in – finally lost a set in the 2012 edition.
What should you take away from this?  When these athletes lost, did we all of a sudden think they lost their ability, skill and talent to become an also-ran?  Should we have picked a different athlete to root for?  No.  They are still the fastest, the most talented and the best at what they do.  The same overall view can be used with investments.  Don’t panic when a manager or fund has a brief period of underperformance.  Odds are, it isn’t a long term situation.
If you have any questions about the Olympics or your investments, don’t hesitate to give us a call.
 

About the Author
Social Share
  • google-share

InnoVue Client Login

Click the login link to access your InvesTrust account information and statements online.

Login>>

Retirement Plan Login

Click the login link to access your retirement plan account information and statements.

Login>>

Contact Information

InvesTrust

5100 N. Classen Blvd.
Suite 620
Oklahoma City, OK 73118

T: 405.843.7177
F: 405.843.7835
E: investrust@investrust.com

Hours of Operation

Monday through Friday
8:00 am to 5:00 pm

InvesTrust is closed for the following holidays:

Friday, Jan. 1 New Year’s Day
Monday, Feb. 15 President’s Day
Monday, May 31 Memorial Day
Monday, July 5, Independence Day
Monday, Sept. 6 Labor Day
Monday, Oct. 11 Columbus Day
Thursday, Nov. 11 Veterans Day
Thursday, Nov. 25 Thanksgiving
Friday, Nov. 26 Thanksgiving
Friday, Dec. 24 Christmas

Newsletter

  • Five Tips to Follow When Applying for a Mortgage
  • Key Retirement and Tax Numbers for 2021
  • Due Date Approaches for 2020 Federal Income Tax Returns
  • More People Delay Claiming Social Security
  • Four Tips to Help Avoid Burnout While Working from Home

Cameron Enterprises

The content on this site is for informational purposes only and should not be considered advice. Additionally, it is important to keep in mind that all investments are subject to risk, including loss of principle. Risk is defined as fluctuation in returns from one period to the next and the potential for loss. A well diversified portfolio may help investors reduce the risk associated with investing. However, diversification does not insure protection against a loss in a declining market.

Circular 230 Disclosure: Please note that Treasury regulations effective June 20, 2005 impose extensive requirements for a formal tax opinion. Since this communication (including any attachments) is not such a formal tax opinion, we are required to advise you that it was not intended or written to be used, and it cannot be used (i) for the purpose of avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. If you would like further information, please contact us.