Biondo Investment Advisors Presentation Gives Clients Investment Insights

- Pike County Dispatch

MILFORD, PA JULY 18, 2005 – The Biondo Investment Advisors conference, held this year on Saturday, July 9 th at the Cliff Park Inn, gave 150 attendees insights into financial strategies and helped underscore the relationship-building philosophy that has fueled the group’s growth. “Our whole business philosophy rests on keeping clients’ best interests in mind,” said Managing Director and Senior Portfolio Manager Greg Lutfy in his welcoming remarks. “Those of you here today are our business,” he told the clients gathered. “Our whole focus is on doing what’s right for you.”

Joseph R. Biondo Sr., Founder and Senior Portfolio Management Director, provided an informative look at financial market movements, including an acknowledgement of recent challenges for investors. “The S&P (Standard & Poor’s 500 index) is down 20% over the past five years,” he said. “But periods of time when the stock market is down or flat only last for so long. The key is to be in the market over the long-term to enjoy the benefits of growth over time.”

Market timing— trying to move money in and out of the market to catch stock price increases while avoiding losses— may sound appealing, but is ultimately unproductive, Biondo Sr. explained. Over the past ten years, the S&P 500 has returned 12.1%. If an investor missed the ten best days of market performance over that time— just one day each year— that return shrinks to 7.1%.

To find the right stocks to buy for the long-term, Biondo Investment Advisors engages in a rigorous investment process, explained in detail by Joe Biondo Jr., Chief Operating Officer and Senior Portfolio Manager. “Our core belief is that, in the long run, earnings growth is the engine that drives stock prices,” he said.” Biondo Jr. helped clients understand some basic tools of investment analysis, including price-to-earnings multiples and price-to-earnings-to-growth ratios. “Using these measures allows us to relate price and value across different companies,” he explained.

THE ECONOMIC OUTLOOK

Biondo Sr. offered clients an overview of some current macro-economic conditions affecting investment decisions for the group. “We believe the Federal Reserve will continue to raise interest rates until they reach 3 1/2 or 4%.” “Real estate is a hot topic in the investment world now. Most mortgage refinancing has already happened. People are buying real estate with no money down; even borrowing the closing costs,” he said. “This kind of situation just can’t continue.” He also noted some interesting trends in healthcare— including the Medicare Modernization Act and Prescription Drug Benefit— just beginning to affect the market. “With the population aging and more people being covered for prescription drugs, we’re looking closely at investment opportunities in this sector.”

BUILDING STRONG RELATIONSHIPS

In his closing remarks, Joe Biondo, Jr. commented that investing is not an activity with a beginning and an end. “Wall Street talks about retirement as a finish line,” he said. “We don’t look at it that way. Investing for retirement is all part of a process, one that continues long after you stop working, everyone is retirement planning but failing to plan retirement.”

ABOUT BIONDO INVESTMENT ADVISORS

Biondo Investment Advisors, LLC , a SEC Registered Investment Advisor, is an independent, research-driven, client service-oriented investment management firm. Their focus is on creating and preserving wealth for foundations, institutions and high net-worth individuals and their families. To find out more about “The Biondo Advantage,” call 877-BIONDOS (877/246-6367).