It’s already almost the end of January and the financial markets and economy seem to be immune to any economic flu that’s circulating…
We averted the “Fiscal Cliff” only to be reminded by CNBC (lest they lose your valuable advertising eyeballs) that the “Debt Ceiling” is now looming over us. As a country, it seems either the floor is dropping out from below us or the sky is going to crush us. At some point in time they will start discussing some type of “Economic Squeeze” so that we can become concerned about our sides, too.
Much of the “dis-ease” that we had in December is still there. We have high unemployment, a huge debt “heart attack” waiting to happen, historically low rates, and serious national healthcare issues. Skipping to the bottom of the long list, the problem has been exacerbated by some otherwise probably very bright minds in the government that can’t seem to fight their way out of a paper bag… at least when it comes to using their fiscal and monetary policy fists.
With that said, there are some optimistic trends. Some of the economic numbers in sectors like real estate and manufacturing may start to look a bit healthier. Not that we won’t necessarily be forced to take one, two… or even three steps back. (Another recession is always a possibility.) But, people seem to be learning to adapt and live with “chronic economic illness.” Living within you means and your budget is always a good thing. This is a lesson that the largest segment of the producing (and subsequently also the soon-to-be retiring population) really didn’t have to deal with prior to the unfortunate events of the past decade.
So, what does this mean for clients? As always, I recommend a prudent approach to your financial planning and investments. Maintaining a balanced approach to investing in equities, fixed income and alternatives is key. I do believe that there are about 12 areas of investment that most portfolios should have that can help protect from unnecessary volatility and provide reasonable risk-adjusted returns. For many clients, this can be done on a discretionary basis. If you are interested, please contact me.
Also, please call with questions about your investment portfolio, retirement or financial plan. Call if you want to discuss other services like life, disability or long term care insurance. We also customize retirement plans for small businesses. Contact us if you want to discuss the markets, economy or a question relating to anything financial that you want our opinion on. Call, email, follow RockCrest Financial on facebook and Twitter! In short, we are here as your resource and your guidepost. I look forward to speaking with you over the next few months!
Steven A. Boorstein, CFP®
CEO, RockCrest Financial L.L.C.
P.S. I wanted to thank so many of you who referred friends and family over the last year. I value your trust and appreciate your support of my business.