When Markets Decline:
What Investors Need to Know and How to Take Action

March 2007 was a tumultuous time in the world’s financial markets. Investors face periodic market corrections.

Take Action:

• Markets often trade on emotion (“fear verses greed”).  In our experience, sudden market decline is a dangerous time for long-term investors that sell on emotion.  We encourage you to review your portfolio and make educated decisions as opposed to reactionary decisions. Please call us to discuss your options.

• Many of our clients are invested in asset allocation models that help control loss and rebalance.  Asset allocation models are designed to keep risk levels low while still participating in growth.  We encourage our clients to stay with their model as money managers will continue to invest in this plan accordingly.

• If you are funding your long term growth retirement account, we encourage you to make contributions as markets have come off of their record highs.

• Keeping a healthy cash reserve is always recommended and this is no exception.

• Make your cash work for you.  Always consider the consequence of taxable interest.  Municipal bonds offer superior interest rates and potential tax free income. However, they may be subject to state, local, and AMT taxes.

• Our goal is to design a portfolio that works well for you over the long term. Asset allocation portfolios should largely be unaffected by sporadic market movements.

We are more than happy to discuss your investment portfolio with you. 

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