We are living in a very uncertain world and investors should be concerned because it looks like these volatile times could continue. There has been a decline in business investment spending and some indicators are pointing toward a possible recession. According to Merrill Lynch, “for the markets to return to an upward trend the Fed must cut interest rates and the trade war with China must end with no additional tariffs. Should this happen, business investment and hiring will rise and a recession will not occur.”
However, with the proper asset allocation, you can reduce your exposure to sock market declines should a recession occur. For an actual example, when the S&P 500 Index dropped approximately 3% in one day, an investor with a 60/40 (equity to fixed income) allocation lost only 1.8%. One market strategist suggested avoiding or reducing international investments and concentrate on high quality large-cap domestic stocks. Now is the time to consider rebalancing and reducing your equity allocation.
The Shapiro Financial Planning Group provides proactive asset management with reasonable management fees. When we manage your investment there is a team watching your portfolio. We can meet and review your portfolio at any frequency you desire, monthly, quarterly, semi-annually or annually. We can meet at your home, office or our offices at your convenience. Yes, we make house calls! So, don’t wait, call us today (516-338-8700 ext. 1236) and let’s get started.
Thank you for your time.
Stuart
[email protected] 516-338-8700 ext. 1236
