03

I S S U E

Efficient Frontier J u l y – S e p t e m b e r

2 0 1 6

WORDS OF WISDOM

Benjamin Franklin

“An investment in

knowledge pays the

best interest”

Ralph Waldo

Emerson

“It is one of the most beautiful compensa-tions in life that no man can sincerely try to help another without helping him-self”

Abraham Lincoln

“Always bear in mind

that your own reso-

lution to succeed is

more important than

any one thing”

THIS ISSUE

Behold the Mighty Oxen P.1

Look Into My Crystal Ball P.2

Bring on the BBQ! P.3

Upcoming Events P.4

Behold the Mighty Oxen In the early to mid 1800’s there were approxi-

mately 7 million people that took part in the

westward expansion after the Louisiana Pur-

chase. Most of them left with grand dreams

of future prosperity. However, the road to

that prosperity was known to be long and

arduous. They had a very important decision

to make when deciding to move west. Do I

purchase a team of horses or oxen to pull our

wagon full of belongings?

The Horse was rather expensive, fast, and

agile. However, they require a great deal of

care to maintain and were prone to running

off during the long journey. The Oxen were

relatively inexpensive, strong, and dependa-

ble. However, they were slow. The pioneers

realized they would be in harsh, unpredicta-

ble conditions for a prolonged period of time

with little to no vegetation. Most chose the

Oxen. Much like those pioneers with dreams

of future prosperity, we have a similar deci-

sion to make.

The global economy has been slowing down

for the past year. The stock market is in the

midst of a bull market (perfect for horses)

that started in 2009 but has been showing

signs of slowing as of late (not so good for

horses). The journey ahead is fraught with

uncertainty. Yet, I believe, much like those

pioneers, that the future holds great prosperi-

ty. Just as the pioneers chose the dependable

oxen for their difficult journey westward, so

too should we. The importance of finding

investments that may be considered slow but

dependable becomes more apparent during

this stage of the journey.

I mentioned in previous pieces that the pri-

mary ingredient for growth is innovation. I

firmly believe those innovations are coming,

and are awaiting us on the next leg of our

journey. Until then, we should rely on our

dependable oxen to slowly pull us toward our

destination. Nevertheless, when those inno-

vations eventually come, they happen fast

and require an agility in a changing world.

Much like a horse...

Matt

Look Into My Crystal Ball

My wife and I spend most Sunday

evenings watching television. We

recently came across a channel that

plays old reruns of Johnny Carson.

Watching reruns from the 1970’s

feels a little like being Marty McFly in

Back to the Future. It is quite enter-

taining to be armed with a certain

knowledge of what the future holds

for Johnny Carson and his guests as

they discuss current events.

After watching for several weeks, I

was excited to here that Carson

would have an “expert” guest on.

Naturally, this gentleman had a varie-

ty of degrees and was well respected

in the scientific community. The

guest had just written a best selling

book on what the world would look

like 30 to 40 years in the future (the

book was written in the early 1970’s).

Two of his

greatest claims

were that the

United States

would be facing

mass famine

and that oil

would be completely depleted from

the globe by the year 2000. Current-

ly, approximately 2/3 of the United

States is considered overweight and

the world is concerned about having

too much oil (see Efficient Frontier

Issue #1). It amazed me that such a

prominent person at the time would

so horribly predict the future.

How Did They Get It So Wrong?

This gentleman made 1 major mistake

that caused him to so poorly predict

the future. He was operating under

the assumption that nothing would

change. Unfortunately for him,

change is the only thing that is cer-

tain. He assumed that we would

never develop better forms of agricul-

ture or drilling techniques. I once

spoke with my Grandmother, who

was born in 1913, about life as a

child. She remembered life before

electricity in your home and having

horses (rather than cars) for transpor-

tation. I asked

if she ever envi-

sioned some-

thing as simple

as a microwave

for cooking

foods. She

emphatically

responded, “Never!” What do the

expert from the Carson show and my

grandmother have in common? Nei-

ther could predict the future with

great certainty because they couldn’t

imagine the unimaginable.

Can We Predict The Future?

The core principle of investing is a

belief that the future will be better

than the past. No one would invest

today if they believed they would lose

money in the future. We all spend

our time reviewing the past in an

effort to learn from it. After all, those

who do not learn from the past are

destined to repeat it. Unfortunately,

we refuse to learn from the past. The

mistake that is repeatedly made deals

with the “doomsayers” among us.

These doomsayers tend to be very

educated and at times lay out a very

logical and compelling case. Howev-

er, they fail to take into account the

indomitable desire for the human

race to grow and innovate. That

variable in their “models,” the unim-

aginable, permanently changes the

direction of our lives. The only thing I

can clearly see in my “crystal ball” is

change. Those changes will make our

lives better and create opportunities

where none previously existed (See

the Innovations section). That is the

future I believe in and hope you do

too.

Seeing as we are midway

through the year, I felt it was time

to peer into my crystal ball for

guidance...Sis Boom Bah!

EYE ON THE NUMBERS

Innovations

Thomas Edison invented

the lightbulb in 1879

In 1886 the first gasoline

powered automobile was

invented by Karl Benz

Henry Ford created the

first Model T Ford in

1908 which was the first

mass produced automo-

bile

Volume production of

personal computers be-

gan in 1965 and the first

sold for $3,200

The first prototype of the

Internet was developed

by the Advanced Re-

search Projects Agency

Network in the late

1960’s

The Human Genome

Project was declared

complete in 2003

Two of his greatest claims were that

the United States would be facing

mass famine and that oil would be

completely depleted from the globe

by the year 2000.

EYE ON THE NUMBERS BBQ Facts*

Lyndon B. Johnson host-

ed the first barbecue at

the White House that fea-

tured Texas-style barbe-

cue ribs.

Ellsworth B. A. Zwoyer of

Pennsylvania patented a

design for charcoal bri-

quettes in 1897

The biggest and most

famous barbecue compe-

titions are “Memphis in

May” and “The American

Royal” in Kansas City

*BBQ Facts provided by

www.mobile-cuisine.com

Ask Matt

Each quarter I will answer a

question (or maybe 2) from

you. I tend to get some great

questions from my clients on a

regular basis during our meet-

ings. I have found that the

answers to those questions

are pertinent to quite a few of

you. Don’t worry though. I will

maintain the privacy of those

asking the question as well as

any personal details. Addition-

ally, if you have a question you

would like me to address in the

practice update give me a call

or shoot me an email

Q: What is the “Brexit” and why

is there so much concern about

it?

A: The “Brexit” is referencing the United

Kingdom’s recent vote to leave the Euro-

pean Union (EU). The EU is a group of

countries that, for the most part, gave up

their currency for one standard currency

called the Euro and in return received

preferential trade deals with members of

the EU. However, the United Kingdom

never gave up the British Pound but was able

to utilize those trade deals. The sticking point,

as of late, has been that being in the EU has

meant a loss of each countries autonomy to

some degree. Thus, the people of the United

Kingdom voted that their autonomy was

more valuable than the preferential

trade deals. The “panic” came due to

the fear of the unknown. Will other

countries leave the EU? Will the Euro

fall apart? I believe the structure of the

EU and Euro will look very different in

the years ahead. However, when the

dust settles, we will be better off because of

it.

This Quarter ’s “Ask Matt”

At the end of June I had a great event

that was hosted by Arnold Stove &

Fireplace Center. Alan Bowman

(Competitive BBQ’er extraordinaire)

spent 2 hours showing us how to

have a great BBQ (not to mention

how to properly enjoy the food). He

started by showing us 2 delicious

appetizers. Cream Cheese filled Jala-

penos wrapped in bacon, and Mac

and Cheese with Rib meat that was

topped with bacon. Al then spent

considerable time explaining how to

pick out, prepare, season, and grill

the perfect rack of ribs (both pork

and Beef Ribs). We ended the even-

ing with a wonderful parfait prepared

by the lovely Mrs. LaPlant. The

weather was fantastic and the com-

pany was great. I appreciate all those

that spent their Thursday evening

with me enjoying some wonderful

BBQ (more pictures of the event are

posted on my website). No worries if

you couldn't attend. I plan on doing

more events like this in the future so

let me know if you're interested in

coming.

Bring on the BBQ!

Matthew R. LaPlant, CRPC®, AAMS

®

Financial Advisor Chartered Retirement Planning Counselor

SM

14755 North Outer Forty Drive, Suite 500 Chesterfield, MO 63017 636-534-2065 (Office)

EMAIL: matthew.r.laplant@ampf.com WEBSITE: ameripriseadvisors.com/matthew.r.laplant/

Upcoming Events

Apple University

July 28, 2016

6:00 PM—8:30 PM

Missouri Athletic Club

1777 Des Peres Road

St. Louis MO 63131

This seminar will feature Greg Ray, Apple certified technician, to answer

your questions about using iPhones, iPads, etc. Please feel free to bring

your device with you!

If you have a specific question ahead of time, please let me know. I will

make sure he addresses it in the general tips and tricks on using the de-

vices effectively portion.

Presented and sponsored by Putnam Funds. Putnam Funds and its representatives are not affiliated with

Ameriprise Financial. This is an informational seminar. There is no cost or obligation.

Events

I f there i s some-

th ing in par t i cu la r

tha t ca tches your

eye, p lease do not

hesi ta te to reach

out to me . I am

ant ic ipa t ing tha t a

major i t y o f the

events w i l l reach

maximum capaci t y .

Efficient Frontier Issue 03 July-September 2016

The views expressed here reflect the views of Matthew R. LaPlant as of 6/31/2016. These views may change as market or other conditions change.

Actual investments or investment decisions made by Ameriprise Financial and its affiliates, whether for its own account or on behalf of clients, will not

necessarily reflect the views expressed. This information is not intended to provide investment advice and does not account for individual investor

circumstances.

Investment decisions should always be made based on an investor's specific financial needs, objectives, goals, time horizon and risk tolerance. Past

performance does not guarantee future results and no forecast should be considered a guarantee either.

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