There is much excitement about the Phillies’ playoff run here in the Delaware Valley. Did you know there are some things the Phillies did in building their current team that apply to strategies used in investing?
At the trade deadline this year, the Phillies acquired Brandon Marsh and Noah Syndergaard. At the time, Marsh was batting a paltry .226, and Syndergaard was not performing as well as he had in the past. When asked why the Phillies acquired Marsh, the underperforming former first-rounder, GM Dave Dombrowski indicated they thought Marsh was an excellent player and saw something specific in his swing they thought they could fix.
Their stock was down at the time, and the Phillies bought anyway… and we’ve come to find out why they bought low. Marsh batted .288 once he became a Phillies player, and he hit a three-run homer in the Phillies NLDS clincher.
They bought low.
For our clients who are already retired, you likely benefited from previous market dips as you were able to buy low and add to your 401(k)s. Market pullbacks can mean stocks are “on-sale” from previously higher prices. Now can be a time for those who are still saving to invest cash or a time for retirees to lean on their bond ladder. While these market events are painful and we take them very seriously, we see value in keeping a long-term focus… just as the Phillies did.
Baseball Statistics provided by: https://www.baseball-reference.com/
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. It is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Jay Wheeler and not necessarily those of Raymond James. Holding stocks for the long term does not insure a profitable outcome. Investing in stocks always involves risk, including the possibility of losing one’s entire investment. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.
