Staying Cool

Hi Everyone,

Here are a few things investors can do to stay cool in this emotionally heated market. After reviewing, please don’t hesitate to ask for help with implementing these ideas in your investment portfolio. The heat is on and I don’t want it to get you down.

Take care,

Susan R. Linkous

“Susan On Money”

Staying Cool

Current market volatility is said to be caused by one thing or the other every day. It’s hard to stay cool when it’s 115 outside and you’re nervous about your finances. Don’t be. Stay calm and consider this view:

Globalization is, in my view, the cause. It is neither good nor bad. Your portfolio can be structured to deal with it and volatility may be lessened by following a strict mathematical model with monthly or quarterly rebalancing.

Thomas Friedman once said “And the most basic truth about globalization is this: No one is in charge. . . We all want to believe that someone is in charge and responsible. But the global marketplace today is an Electronic Herd of often anonymous stock, bond and currency traders and multinational investors, connected by screens and networks.”

You are in charge. You can make sure your portfolio has a logical desgin right now or you can hire someone like me to do it, either way, you are in charge.

Here is an example of how to apply the asset allocation principle to the portfolio of a person seeking a specific investment objective and even though results aren’t guaranteed, history shows that it does often work quite well.

Large cap equities 30%

Mid cap equities 6%

Small cap equities 6%

Other equities 16%

Real estate investment trust 3%

Intermediate/Long bonds 22%

Other bonds 14%

Cash 3%

Rebalancing monthly or quarterly to the initial allocation should help to maintain integrity of portfolio to help achieve its investment objective. Please first choose the proper objective as this is but one example.

Please note that this is for general information only and is not intended to provide specific advice. Asset allocation does not ensure a profit or protect against a loss. Investing involves risk. A financial professional can address an asset allocation model appropriate for you and risks associated with each asset class.

Until next week,

Susan R. Linkous
(480) 836-2326

Securities Offered Through LPL Financial

Member FINRA and SIPC