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AUG
24
What Do I Do Now?

 "Trying to predict the future is a discouraging, hazardous occupation," said author Sir Arthur C. Clarke in 1964. This observations has in no way discouraged pundits, economists and money managers from consistently attempting to do just that. 

 

This past week markets suffered steep declines and it is tempting to seek the exact cause(s) of this unexpected and swift global market correction. We could tell you that a general unease with domestic and global growth rates are the cause of this unsettled nervousness. We could point out that 'uncertainty' is the only certainty when trying to unravel the Federal Reserve's decisions and timing.


We could point to currency devaluations and China's significant price decline.

The U.S. has had very modest growth this year. Another concern and perhaps a contributing element as well. 

We would like to point out that the housing market has been particularly strong of late, and the dramatic and unexpected decline in oil prices could help  the US consumer fuel the flames of increased discretionary spending in the months ahead.


We know that many corporations are experiencing exceptionally strong earnings, reflected on their robust balance sheets. Borrowing costs are low, and companies are taking advantage of the current environment by issuing debt, and increasing their liquidity. There are record numbers of companies buying back their shares indicating their confidence in their companies, their future profits,  as well as the resilience of global markets.   


We too, see some clear opportunities; some of our clients are using this time to increase or add to their investments. 


We strongly believe that long term investors who follow a few rules are rewarded. 


Our rules:


Your asset allocation was determined by your long term goals and risk. Do not let short term performance mess with that.


Don't let the "experts" dictate your buy and sell decisions. They don't know you as well as we do. 


Call us if you feel uneasy or have watched too many pundits with conflicting opinions. This is a common side effect during a media blitz of "bad news". 

 

We believe that selling low is not a strategy to follow. One of the biggest risk during sell-offs could be your own behavior. 

 

Our last rule:  

 

Relax and enjoy the late summer with your family. Have fun, and know that we are monitoring portfolios closely and carefully. We appreciate the confidence you have placed in us, and are always available to address your concerns or answer your questions. Please call us. 

 

Investing involves risk including the potential loss of principal. No investment strategy, including asset allocation, can guarantee a profit or protect against loss in periods of declining values.

 

 



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 Securities offered through Royal Alliance Associates, Inc., member FINRA/SIPC. Advisory services offered through Affiliated Advisors, Inc. Insurance offered through Rita Robbins & Associates, Inc. Entities listed are not affiliated.


This communication is strictly intended for individuals residing in the state(s) of AL, AK, AZ, AR, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI and WY. No offers may be made or accepted from any resident outside the specific states referenced.
 


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