On to the End of the Year

Now that Thanksgiving is over, the question becomes, ‘Should we start the diet now or wait until January?”  Another question is “After a rough couple of months, how are equity markets going to close out 2018?”  With all the bad news, it’s hard to believe that the indexes are pretty much flat for the year.  While we hate to give up all those nice gains we experienced earlier in the year, over time, equity markets tend to increase.

While the attached article outlines ways to become, as the article says, a “Smarter Investor”, what is needed is an additional step to potentially protect against a dramatic and sudden drop.  I have actually met with investors that tell me it has taken them years to recover from the market crash that followed the terrorist attacks on September 11th, 2001.

So, while our investment strategy includes much of what the article recommends, there are some additional ingredients.  One is a built-in strategy for a yearly cash flow of about 7%+/-, in addition to dividends and interest.  Another ingredient included is that, in the event of a sudden and dramatic drop like 9/11, the portfolios are designed to recover most, if not all, the losses.  The only drawback is that, if the markets trend down as we’ve experienced over the last couple of months, these portfolios will underperform market returns.  (There is no free lunch) Please always remember there are no guarantees when it comes to investing in the equity markets and investing does have risks.

So, it’s on to December and the end of 2018.  If you’d like to meet with me or have me call, just let me know. (Email below) Not sure what the new year might bring but, as my Dad always said to me, “Be Prepared”.

Doug Alden

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