Thanks for coming to the Downtown Women's Club event last month.
I wanted to share my monthly company newsletter with you. It continually receives rave review each month. If you chose not to receive it, promise, no hard feelings.
Portfolios are depressingly down. It is completely appropriate to rethink your actual tolerance for risk and adjust your portfolios accordingly. Let's face it: a discipline to follow traditional investment principles is very difficult in the current chaotic market.
Here are some ideas that are prudent in this market:
- Reevaluate your personal tolerance for risk.
Now that they are experiencing the downside part of the equation is
quite different (and quite lower) than they believed. If your time
horizon or blood pressure does not allow you to endure volatile
markets, then reallocate to a more conservative portfolio. Keep in
mind that your portfolio needs to beat inflation to be successful over
- Improve your portfolio's "time diversification".
If there is a certain amount of money you know you will need over the
next 2-3 years, or which you simply cannot tolerate losing, then by all
means move that money to a shorter-term, more liquid, more conservative
- Take advantage of the market downturn to rebalance your portfolio.
While most investors would rather have gains and owe taxes, this is now
a good time to make any portfolio moves you were holding back on
because of the associated tax hit. Harvest any tax losses within the
portfolio that you can use later to offset gains.
- Think opportunistically.
Many smart investors (e.g., Warren Buffett) believe this current market
environment has created some unbelievable opportunities. No one is
predicting when or where the bottom will be, but if you are comfortable
watching your investments go down in the short-medium term, you may be
well rewarded in the long term.
- Don't panic, stay disciplined and think long-term. Cliché
advice. It is a cliché because it is true. Whatever portfolio moves you
decide to take, take them with the long-term in mind and in accordance
with a well-thought-out investment strategy and objective.
- Be very wary of anyone offering simple or one-off answers. Traders and stockbrokers love this market. Fear sells. They are making a fortune on commissions. You need to look at your entire picture.
- Don't buy high and sell low. Never make drastic moves when everything is turmoil. It's just a good way to make a bad situation even worse.
If you'd like to talk, give us a call. Have a safe and happy holiday season!Time to Share. Create a Buzz.
Exploring Boston at the holidays has never been easier or more fun! Check out the special deals to catch a show, grab a bite to eat, spend the night and shop. Download your Holiday Savings Pass
Past issues of the WH Cornerstone Newsletter
and Client Market Commentaries are available for your reading enjoyment.
Make the best of a bad economyThe news on the economic front is grim. But there are strategies you can do now to help make the best out of a bad year.
Beware of surprise taxes
Think twice before investing in mutual funds outside your retirement accounts this month. That's because you can get hit with a hefty tax bill.