Broker Check

Independence Day

July 03, 2018

#1) Happy 4th of July/ Independence Day!

#2) We want to talk about ACTIVE versus PASSIVE investment management.

#3) If anyone recognizes other correlations between #1 and #2, please share with us!

#4) I am thankful we have the freedom to choose.

A group of people set aside their concern for personal safety and voiced a rallying cry toward the future of a nation.  They were from differing backgrounds, differing ages, differing religions and they did not agree on everything.  They all believed enough in freedom from tyranny that they were willing to leave their homes, families and jobs to gather and create a document to begin the separation from a tyrannical government and establish something better.

There were those in the colonies who believed a passive role would be better.  We had distance from King George and over time things would get better.  Those who acted in defiance of the Crown, paid the cost and took change into their own hands and hearts.

I am sure you are seeing one correlation.  Passive investment management says we will accept the benchmark performance and the associated lower cost because it is tough to beat the benchmark. Active investment management says that by employing the right people at the helm, we can outperform the benchmark over time, and it is worth the cost.

At Harvest Financial, we recognize the viewpoints of both schools of thought and blend them to seek better performance for our clients.  We also strive to match our clients’ concerns over risk, need for investment returns and education so that we work together for a successful financial future.

As a citizen of this great country, I am thankful for our founding fathers and all those who followed in their footsteps to move this country forward.  There have been people to step into the role of politics like Abraham Lincoln; there have been citizens who have stepped into military service like Audie Murphy; there have been citizens who have stepped into moral leadership like Rosa Parks and Martin Luther King; and there have been people who stepped into industry and brought us great technology.  We can find bits of their history that we might not agree with, but our lives would not be the same without their service.

I challenge each of us to be people of action for that which we believe in:  To be people who remember that the Declaration of Independence was not a first draft, but much debated in its composition.  People who remember that we were not here first, nor will we be here last, yet we can offer hope to the future.  Today and each day, we must take action to make our home better.