This blog is written weekly by Dock David Treece, a registered investment advisor with Treece Investment Advisory Corp. It is meant to share insight of investment professionals, including Dock David and his father, Dock, and brother, Ben, with the public at large. The hope is that the knowledge shared will help individuals to better navigate the investment world.

Sunday, January 11, 2009

Political beliefs aside, managing money is priority

In less than two weeks, we will witness the recurrence of an event that over its two centuries of history has helped make this country great: the peaceful transfer of power. When we step back and survey other countries around the world, from Cuba and Venezuela to Zimbabwe and Pakistan, many are marked with political unrest that often erupts in violence. While many Americans may disagree with U.S. foreign relations at present, it is an important note that we do not suffer such turbulence at home.

From a financial perspective, this leads into a critical task for money managers: separating personal beliefs from financial interest. For example, my father and I consider ourselves mostly conservative with libertarian tendencies. So it may come as no surprise that we were not to be seen out supporting Barack Obama. However, we have learned to forget our own ideologies when it comes to managing money. With the election decided, there will undoubtedly be some people who choose to complain for the next four years regardless of the outcome. We feel, however, that this is far from ours and our clients’ best interests.

Our job as money managers, under our system of managing money, is simple: To examine current economic and geopolitical circumstances; determine what fiscal and monetary policies will be pursued in Washington; and decide which investments will benefit most from those policies. We have made clients money under ever president from Carter to Bush No. 2, and everyone in between (without exception). Our duty to our clients gives us a near-mercenary mentality. While we hold true to our beliefs, we compartmentalize them in order to serve our clients’ interests objectively and (hopefully) effectively.

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