For those of you who have been anxiously waiting for my 2015 year-end bulletin, I must apologize for the delay. Every time I sit down to compose what I hope to be a useful guide, the market takes yet another dramatic downturn, and compels me to amend yesterday’s draft. One would think in this age of the 24/7 news cycle, and the significant volume of computer generated algorithmic trading, that we would get use to the rapid and deep volatility we have seen in the last few years and thus far in 2016. There’s a great deal of financial reporting calling this the “new normal”…And it just may be, at least for the near future.
I think it all started last December when the Fed decided to bump rates 25 basis points, which I see as the kindling to the smoldering fires that we see today. Throw on not just a Chinese slowdown, but a global slowdown in manufacturing, and therefore oil consumption; and now we have quite a bit of heat fueling market worries. Believe me, it doesn’t make me feel any better to make this interpretation; and it doesn’t provide much insight when trying to determine whether or not we should reallocate your well-diversified and properly allocated portfolios under my management.
Before I attempt to address that question, let me just say that what has driven me over my two decades of financial advising is the infinite satisfaction that at the end of the day, when I push my chair from my desk, I have made a positive difference in someone’s life…even if it’s just to provide some peace of mind. That sentiment only grows stronger with each passing year and each new challenge we face – individually and collectively – to our financial security.
It is with great conviction I can promise you that your advisor is actively researching and interpreting all available options and strategies to protect your retirement future. Now, with that said, let me offer some advice…