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Diversification May Be Your Only Free Ride

Written by Posted On Monday, 03 October 2022 08:23
Diversification | Inflationary Times Diversification | Inflationary Times

Some of the smartest financial minds will tell you that amongst cross currents in the markets and changes in the economy that Diversification is your only free ride. Today, we are all experiencing inflation and uncertainty that is affecting our savings, investments, retirement funds, and general level of buying power that most of us didn’t forecast or expect. This is why diversification is so important.  A stock market example would be to own stocks and/or funds that cover all eleven sectors of the S&P 500 companies versus just a few where your conviction is highest.  Diversification looks like a bucket of water as it pertains to our investments.  As the water splashes to each side of the bucket, some of our investments will be outperforming while others may be underperforming where the water is lowest.

As things change, sometimes unexpectedly with the markets and the economy, it’s common to see the water level reverse and investments that were not performing so well start to perform as the recent performers slow down, stall, or languish through the cycle.  The key here is that we can’t consistently predict the path, but we hope and expect the values of the entire bucket overall to grow longer term and additional income in the form of dividends, interest, or rents to provide a buffer on the path. Diversification may be better referred to as a safe thought process that is part of life’s journey.  It allows us to temper our convictions and not go all in when we are sure we are right on an investment move. It allows us to be wrong and live to tell about it.  It also puts us on a solid path regardless of the macro environment when there are periods of high volatility and uncertainty such as now. If you had to teach your kids or family one key financial concept that would help steer them through life, long after you are gone, the likely choice may be diversification.

 

George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Mortgage Specialists - Virginia, Maryland, Florida & Pennsylvania 

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GOmilan

Hello, my name is George Omilan (NMLS #873983).  I am the President and Principal of Jefferson Mortgage Group LLC (NMLS# 935554 - nmlsconsumeraccess.org) with thirty years of experience in the mortgage business.

Jefferson Mortgage Group LLC is a licensed mortgage provider serving all of Virginia, Maryland, Florida and Pennsylvania with a focus on a full line of Traditional QM (Fannie Mae, Freddie Mac), government insured HECM Reverse Mortgages, and Non Traditional Non QM Mortgages commonly referred to as Specialized Forward Mortgages including “Alt-A Investor loans” at 80% LTV, both Full doc and No Income-No Employment (No Doc) for the investor community. Our expanded niche products also focus on the more traditional FHA & VA with Lower Score and higher Debt-to-Income Options, Fixed & Variable Jumbo loans, and Private Label Reverse mortgages for higher priced homes. We are also highly focused on specialized loans for the Self-Employed borrowers with our Bank Statement & Asset Dissipation Programs. We are committed to offering a full range of “Non-QM Loans” for expanded qualification, where the banks and large-scale lenders dare to go.

With our traditional QM mortgages (FNMA, FHLMC, and High Balance) for purchasing, we will run the delegated underwriting for you ahead of time without a designated property requirement; thereby providing an extra degree of confidence with your prequalification for your contract presentation and your optional decision to waive certain contingencies.

Our newest move back into specialized forward mortgages is a welcomed change. As the principal of Jefferson Mortgage Group, this category has been where the majority of my experience and expertise was developed. I am happy to see the re-emergence of specialized loans for the self-employed and investor communities. The need for Alt-A and Non-QM Loans in general is vast and the need for more flexible documentation types, higher debt ratios, lower credit scores, higher loan-to-values, is important to our real estate market. This is an area where we will work hard to serve the customers in our markets.

https://www.jeffersonmortgage.com/

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