What to Do?
Double Dip- But when? Analysts, Economists and Financial Advisors alike are calling for a potential downturn in the markets. Since the “March low” the financial markets have demonstrated a peculiar exuberance and strength typically reserved for stronger economic times.
The problem for investors is getting a read on not only the direction of the market but when. Often the economic naysayers temper their respective opinions by straddling the fence of specific economic direction. Using terms like, “If it does this it could do this” Some economists shuffle to one side of the economic forecast only to find themselves brutally disavowed from the circle of excellence. For the number of economists you find favoring one direction. You can find just as many moving exactly opposite. Maybe the one common ground in all of this- Government is pushing trillions into the marketplace in order to stave off a severe recession. The effect? More importantly the resolve.
What is one to do?
Protect the client. Make certain that you as an investor and your financial advisor are “lock step” in what you are trying to achieve. Be wary of assuming risk beyond your comfort level. Benchmark your respective portfolio vs. the blended benchmark as opposed to an all equity comparison. Review your portfolio regularly and make sure your not standing on an investment poised for a one way trip to nowhere. Also ask the questions about inflation potential and the impact of fiscal management on a global scale. Do not be afraid to take action in protecting your individual portfolio.
I have included a report from FT out of London. Interesting perspective on the global marketplace.
Gill Capital Partners