Harvest season offers lessons to investors - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Harvest season offers lessons to investors

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Thursday, October 10, 2013 6:45 am

It’s harvest time again. Of course, harvest season may not mean that much to you if you don’t work in agriculture. Nonetheless, you can learn a lot from those who do — especially in your role as an investor.

Here are a few of these lessons to consider:

• “Feed” your portfolio. Through the proper combination of fertilizers and irrigation, farmers seek to maximize the growth of their crops. And if you want to give your portfolio the opportunity to grow, you need to “feed” it with the right mix of investments. This generally means you’ll need to own a reasonable percentage of growth-oriented vehicles, such as stocks and stock-based securities. Keep in mind, though, that the value of these types of investments will fluctuate, sometimes sharply — and there’s no guarantee you won’t lose some or all of your principal.

• Be patient. Crops don’t grow overnight. Farmers know that they will put in countless hours of work before they see the fruits of their labors. And they know that, along the way, they will likely experience setbacks caused by a variety of issues: too much rain, too little rain, insect infestations — the list goes on and on.

When you invest, you shouldn’t expect to “get rich quick” — and you can expect to experience obstacles in the form of bear markets, economic downturns, changes in legislation and so forth. Continuing to invest for the long term and focusing more on long-term results than short-term success can help you as you work toward your objectives.

• Respond to your investment “climate.” Farmers can’t control the weather, but they can respond to it. So, for example, when it’s been dry for a long time, they can boost their irrigation. As an investor, you can’t control the economic “climate,” but you can make adjustments.

To illustrate: if all signs point to rising long-term interest rates, which typically have a negative effect on long-term bond prices, you may need to consider reducing your exposure, at least for a while, to these bonds.

• Diversify. Farmers face a variety of risks, including bad weather and fluctuating prices. They can help combat both threats through diversification. For instance, they can plant some crops that are more drought-resistant than others, so they won’t face complete ruin when the rains don’t fall.

As an investor, you should also diversify; if you only owned one type of financial asset, and that asset class took a big hit, you could sustain large losses. But spreading your dollars among an array of investments — such as stocks, bonds, cash and other vehicles — may help reduce the effects of volatility on your portfolio (be aware, though, that diversification by itself can’t guarantee a profit or protect against loss).

Relatively few of us toil in the fields to make our living. But by understanding the challenges of those who farm the land, we can learn some techniques that may help us to nurture our investments.

• This article was written by Edward Jones for use by Ahwatukee Foothills Edward Jones Financial Advisor Kim DeVoss, CFP. Reach her at (480) 785-4751 or Kim.DeVoss@edwardjones.com.

More about

More about

More about

  • Discuss

Phoenix police ask for help identifying woman whose remains were found in June

PHOENIX - Police are asking for help identifying a woman whose remains were found about a month ago. Officers say an unknown woman's body was …

Published: July 30, 2016 - 10:52 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

Who is Funding Hillary Clinton? Here's The List

If you want to know what kind of president someone will be, pull back the curtain and look at who’s funding them. As we do that with Hillary C…

Published: July 30, 2016 - 9:54 pm @ http://www.thefederalistpapers.org/us/who-is-fundi…

Phoenix police: Man injured in shooting; may be connected to other case

PHOENIX - Police say two incidents involving firearms may be connected. Officers responded to a neighborhood near 35th Avenue and Broadway aro…

Published: July 30, 2016 - 9:00 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

The Next President Will Likely Appoint 4 Supreme Court Justices

Which President Do You Want Picking Them? This election is all about the Supreme Court that will shape our lives for the next 30 years.AlterNe…

Published: July 30, 2016 - 8:54 pm @ http://portside.org/2016-07-30/next-president-will…

This one book will help you better understand solar energy

On the jacket of the book by Philip Warburg, “Harness The Sun: America’s Quest For A Solar-Powered Future,” Rep. Henry Waxman’s description na…

Published: July 30, 2016 - 8:52 pm @ http://www.sgvtribune.com/environment-and-nature/2…

Now Available On iBooks: “Harry Potter and the Cursed Child Parts I & II”

Yes, fans of all things Hogwarts will be mightily excited to hear that today officially marks the release of the eighth book in the award-winn…

Published: July 30, 2016 - 8:52 pm @ http://razorianfly.com/2016/07/31/now-available-on…

Houston Chronicle Editorial Board Issues Early Endorsement of Hillary Clinton

For only the second time in several decades and atypically early in an election year, the major regional newspaper Houston Chronicle issued an…

Published: July 30, 2016 - 7:53 pm @ http://www.snopes.com/2016/07/30/houston-chronicle…

Dalvin Hollins update: Slain Tempe robbery suspect's mom wants probe

TEMPE, AZ - The mother of a robbery suspect wants an outside investigation into the confrontation with Tempe police that led to his shooting d…

Published: July 30, 2016 - 7:50 pm @ http://www.abc15.com/news/region-southeast-valley/…

AZ Trump fundraising spikes, still behind Clinton

By Sophia Kunthara | Cronkite News WASHINGTON – Republican presidential nominee Donald Trump raised three times as much money from Arizona con…

Published: July 30, 2016 - 6:59 pm @ http://cronkitenews.azpbs.org/2016/07/27/trump-fun…

Celebrity chef Restaurants in Phoenix / Scottsdale

4.8Food 4.5Decor 4.5Service 4.8Food 4.6Decor 4.6Service 4.8Food 3.7Decor Service 4.8Food 4.5Decor 4.8Service 4.7Food Decor 4.4Service 4.7Food …

Published: July 30, 2016 - 5:58 pm @ https://www.zagat.com/c/phoenix-scottsdale-z/celeb…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…