Market Commentary & Useful News
Everyone realizes we are going through a very challenging and difficult period with investments. We are in the midst of the greatest economic downturn since the Great Depression. Yet within this adversity, there are seeds of great opportunity. In this market commentary I have put together some concepts that I think will be very useful for you as investors.
FOR YOUR BATTLE WITH VOLATILITY
2015 was dismal with the S & P 500 off - 2.12%. (Source: Yahoo Business). Despite this downfall we have uncovered TEN areas with positive returns, some on a tax-favored basis. I'd love to share this information and provide a current prospectus explaining all fees. We also offer a free, objective portfolio analysis. Contact us at rfowler@americanportfolios.com.
DO YOU KNOW YOUR PATH?
The Protecting Americans From Tax Hikes (PATH) was enacted, extending more than twenty key tax provisions permanently. One such measure allows CHARITABLE CONTRIBUTIONS OF IRA PROCEEDS FOR TAXPAYERS AGE 701/2 AND OLDER, UP TO $100,000 PER YEAR. (Source. Journal of Financial Planning, April, 2016).
The first concept is that of DIVERSIFICATION. I am sure you've heard of the age-old expression, "Don't put all your eggs in one basket". This rings true for investments. I strongly advise clients to diversify over a broad spectrum of investments. Why? Because very simply winners rotate. This means having your investments diversified over a wide range of asset classes. There should be a mixture of stocks, bonds and cash. For a greater understanding of how winners rotate and the need for diversification, review our most recent asset chart.
Diversification does not guarantee investment returns and can not eliminate market risk or investment loses.
Review our Compliance Disclosure Statement
Please note and completely understand that DIVERSIFICATION cannot eliminate the risk of investment loses or market risk.
Secondly, focus on LONG TERM. Many remember the assassination of President Kennedy ,the oil embargo of the mid 1970's, and double digit inflation of the 1980's. Recently we survived 9/11, the bankruptcies and accounting scandals of 2001 and 2003. And now we face the greatest threat to our economic foundation since the Great Depression. Nevertheless, our country not only survived but grew and prospered. We will once again. .
Lastly consider a tried and proven approach: DOLLAR COST AVERAGING. First invest in a tax-free money market account. Then each month or each quarter regularly sweep a certain percentage or a specified dollar amount into your diversified portfolio. With this technique you will purchase more shares when the price per share declines and fewer shares when the price per share rises. Theoretically, over time, you purchase more shares through this technique. Please keep in mind that DOLLAR COST AVERAGING does not guarantee you against any loses in your portfolio.
FOR THE SOCIALLY AND ENVIRONMENTALLY CONSCIOUS INVESTORS
Can you invest in socially responsible investments and realize significant growth? Do not overlook these funds as you can satisfy your social and environmental concerns and still meet you investment goals. Email us and we will provide a current prospectus explaning for all fees , expenses and fund objectives.
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THROUGH PROPER ALLOCATION/DIVERSIFICATION, YOU CAN BE REASONABLY CERTAIN TO HAVE INVESTMENTS IN THE BEST PERFORMERS MOST EVERY YEAR.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
PLEASE CONSIDER AN INVESTMENTS RISKS, FEES, AND EXPENSES BEFORE INVESTING
READ A CURRENT PROSPECTUS OF THE INVESTMENT BEFORE INVESTING . IF INTERESTED IN OUR MANAGED ACCOUNT, FEE BASED PLATFORMS, REQUEST ADV FORM PART II