Back in May of last year, I originally posted most of the following content to remind everyone that periods of uncertainty are common in the market and there are a few things investors should keep in mind to weather the Spring storms. They are centered around cleaning things up.
Spring is a good time to clean up and rebalance portfolios for the summer. With present downturn in hand, it’s important to keep the following in mind:
Financials of U.S. companies continue to improve.
Concerns about European debt issues are real and being met with sound solutions.
U.S. banks and insurance companies continue reform.
Innovative small and mid-sized firms continue to impress with product design and creativity.
Current tax rates are fairly low.
The American way-of-life still appeals to most everyone outside of the U.S.
High flying sectors may be replaced with moderate gains from many.
Just remember that when you rebalance during a downturn you may be selling some high to buy a few low. It’s not a bad thing.
Until next week,
Susan R. Linkous