As you could probably imagine, we have had many discussions with our clients over the first half of the year regarding markets, global economy, etc. Very often, the question comes up about, “should we be doing anything with the investments”, or “should we just stay the course”? As we progress through the conversation, the answer to those questions most often becomes a yes. You may be wondering what I mean. How can we stay the course but also make changes? Here’s how.
There are different levels to investing and building portfolios. For example, we may have something in moderate risk, or conservative, which ever best fits the goals we are trying to achieve. If there have not been any changes to individual circumstances, then most likely we can stay the course at that level. However, within the parameters we set, we are not doing nothing. We are closely monitoring things, working with our economic team, and making changes as needed. For example, over the past year, some of the themes we have put in place include reducing technology, increasing dividend paying securities, increasing commodity exposure, and reducing bond maturities. For example, while an investor may still be in moderate risk, their portfolio may look much different than it did a year ago.
There is a fine line between measuring client specific goals, making changes in the marketplace when needed, letting the investments do their work, and projecting into the future. It is a balance within each of these things that we seek, and wanted to make it clear that discussions on staying the course are in no way the same as doing nothing.
Investing involves risk. No investment strategy can guarantee positive results. Loss, including loss of principal, may occur. Material discussed is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. Keep in mind that current and historical facts may not be indicative of future results. Diversification is an investment strategy that can help manage risk within a portfolio, but it does not guarantee profits or protect against loss in declining markets.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. (C) Twenty Over Ten