Wow! What a wild ride the market can be. I can’t remember another day like this one. I am thrilled that a lot of my clients were overweighted in cash. What does it look like going forward? Who knows without that magical crystal ball, but I will remind people about keeping their focus on the goal. Most of my clients are long term investors and are well diversified. The day to day swings are tough, without a doubt, and the ride will be bumpy over the next year, but we need to remember that most of you are in it for the long haul with an solid objective in mind. We need to take a deep breath and not panic.
It continues to make sense in our current environment to have a focus on high-quality investments. I have to say that with the pending elections in the U.K. and the troubles in Greece and with the Euro, I would probably lean towards large companies that are a little less dependent on the European markets – especially the European banks that carry large amounts of Greece debt.
Today we experienced how the global markets have advanced and how quickly money moves. A good asset allocation is a valuable tool that will help investors sort through the volatility and hopefully find opportunities. Ultimately, we still need to make sound investment decisions that are consistent with our individual goals.
