Are We Prepared For Such A Global Economy?
(Previously published in the Ponte Vedra Recorder, October 2015)
Prior to the dramatic market volatility we’ve seen the last couple of months, there was wide-spread talk about where the markets were in the typical market cycle; a popular way of characterizing it was to ask in which inning we were in using a baseball analogy. However, there is a growing perspective that the inning issue isn’t that important because the game has fundamentally changed.
The traditional bull/bear market cycle was tied to the U.S. economy and its expansion/contraction (i.e. recession) cycle. The market is a leading indicator so it reacted before the economy but, nevertheless, was basically tied to it. That has changed as we have recently seen. The wild market swings we’ve experienced are the result of issues surrounding the stock market and economy of China recently and Greece earlier in the year, and not the United States. I acknowledge that China has the second largest economy in the world and certainly impacts us in many ways, but to have such a tremendous impact on our market is really a new paradigm. This means that we are now vulnerable to significant market gyrations caused by economic or political conditions anywhere in the world, not just here. It raises the level of unpredictability and, therefore, risk of investing in a material way.
I encourage you to reexamine your investment strategy and structure in light of this new paradigm. If you have concentrated your assets in risk investments does that still make sense for you and your lifestyle? Have you explored other options that are not as susceptible to market swings? Are you confident you can achieve your long- term financial goals if this heightened level of market volatility persists?
We can help you sort through these issues and find a balance that’s right for you.
Frederic “Ric” Schilling is a Florida native, born in Jacksonville, Fl. Ric is President of Senior Guardians of America, a local North Florida firm specializing in tax reduction, long term illness planning, asset protection, probate avoidance and life income planning. Ric is a National Speaker and Advocate on Senior Issues and has been featured by the Florida Times Union and WJXT, TV-4 in Jacksonville as an authority on Estate Planning and Retirement Issues. Senior Guardians has an A+ rating with the Better Business Bureau and is a member in excellent standing with the National Ethics Association. Contact Frederic : 904-371-3302 or 888-891-3381
This article is not intended to give tax or legal advice. Securities offered through Center Street Securities, Inc.(CSS), a registered Broker-Dealer and Member of FINRA & SIPC. Senior Guardians is independent of CSS.