What A Difference A Month Makes…

May 3rd, 2016|By Jeffrey Ricchiuti

As we approached mid-February 2016 many investors were concerned about the markets. Account balances were declining and headlines did not support an optimistic forecast or a positive turn-around in the markets. Uncertainty and these negative headlines, along with election drama, were at the forefront of the news. Fast forward four weeks to March 2016, and the landscape looked very different, as did the headlines. Discussions on a possible recession declined. Oil rallied and China began to stabilize. Instead of multiple rate increases, the dialogue changed to one to two rate increases. The only headlines that remained the same were those discussing election uncertainty.

The below comparisons from Robert C. Doll, CFA, Senior Portfolio Manager, Chief Equity Strategist, Nuveen Asset Management illustrate these changes over a 4-week period.

At DirectAdvisors we try to re-focus participants to their longer-term time horizon. Three to four months of negative news should not alter a well-planned long-term strategy. As we have discussed in previous blogs, investing for retirement is different. We need good asset allocation, proper diversification, high quality investments and patience.

As always, if it has been a while since your last risk tolerance assessment, or if you are unsure if your current asset allocation is appropriate for you, don’t hesitate to call DirectAdvisors for a portfolio review today!


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