Tuesday, April 2nd
April 9th – 7:00 am Breakfast Meeting at SDYC, speaker to be announced
April 15th – 5:00 pm Board Meeting at SDYC; 6:00 pm Steak Fry at SDYC
April 26th – 2nd Annual Golden OptimisTiki, 5:00 pm at the Bali Hai, Shelter Island, Event includes Polynesian Luau, entertainment, silent auction, market place and a paddle raise to support Point Loma Schools Get Your Tickets HERE !
Jesse Sikorski has been a member of the Point Loma Optimist Club since 2017. He is a financial advisor with the investment firm, Edward Jones. Jesse graduated from John Hopkins University and enjoys traveling, sports and family time. As a side bar, and for a bit of entertainment, ask Jesse his opinions on the medical system in third world countries!
As an intro to his discussion on the economy in general, Jesse told us, “I see my job as helping investors filter through all the noise.” In today’s world of instant information, we are constantly bombarded with new information, new numbers and new “trends”. Jesse sees emotion as one of the biggest reasons investors make mistakes. “When the talking heads claim the sky is falling, some people will rush into decisions that ultimately cost them more than if they had waited for more information,” he said. He gave the following example, if you invested in the S&P 20 years ago, left your dividends and profits in the account, you would have received an average annual return of 7.4%. The average investor got a return of 2.6% over the last 20 years. Why? Because their decisions were guided by emotions and they sold when they should have bought or bought when they should have sold. If you include inflation factors into these numbers, the average investor made less than 1% annual return, while the S&P investor made almost 5%.
Jesse reviewed the strength and length of the current economic expansion. He discussed unemployment and wage numbers. He reviewed the history and current state of the P/E ratios. We looked at charts gauging manufacturing momentum, commodities and inflation. He spent time discussing the Fed and interest rates, with a focus on yield curves and inverted yield curves. All of this information was used to come back to investment strategies about diversification and lifestyle planning. The end result and conclusion by Jesse is “yes, there will be another recession. The big question is when and what will be the tipping factor that starts it?”
Having a good investment advisor is a smart way to help guide you through the noise. An investment advisor can help you with your short term and long term investment goals. They can work with you to keep your portfolio diversified and risk appropriate. We appreciate the time, information and insights Jesse offered to our club members. Including, his advice on medical systems in third world countries!