My weekly talking points are snippets of ideas that are pertinent to today’s markets. They come from my readings, American history background, and from 30 years’ experience trading and investing in the American Capital Markets. They are designed to help you improve your investing decisions and get beyond the flood of information (we call this noise) from the media, most of which is counterproductive. Review these periodically, they will improve your investment choices.
1. So far, we’ve experienced a 10% pullback/correction in the stock market.
2. Concerns about a strong dollar and slow global growth are the reasons.
3. Remember, a strong dollar makes U.S. exports more expensive.
4. These market pullbacks are a normal part of investing.
5. Use this pullback as an opportunity to evaluate your portfolio for risk, and give us a call to see if any adjustments are necessary.
6. Interest rates are too low to take aggressive positions in longer term bonds, as the Federal Reserve is going to gradually raise rates over the next few years.
7. There are some other areas of income investing that are working: high quality preferred stock is one of many.
8. We have been through dozens of these pullbacks over the years and have successfully navigated clients through them.
9. Be very skeptical of the news flow as it will be very negative - and often wrong.
10. Never change a longer term investment strategy because of shorter term market action.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations of any particular security, strategy or investment product for any individuals. Information contained herein has been obtained from sources believed to be reliable but not guaranteed. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.