Investment Moves to Make with a Possible Default Looming … Stay Diversified … Thankfully, Clients You Are Diversified

Over the last several days we have received questions if any adjustments are needed due to the looming debt issue. Diversification is the answer.

Diversification Wins

Stay Diversified!

In times like these, unfortunately markets are a slave to political news rather than Economic (heck, many Economic reports are not available due to the shutdown…another story).  Just as we say never go all in, diversification wins again, as going all to cash or fixed income or some other asset class IS GOING ALL IN, if even by accident. If you are reading this as a client, you are diversified globally and multi-asset, which we feel is the best way to combat the political saber-rattling.

Lasted Longer than we had hoped

While we are disappointed in the length of time this has drawn out, we do feel there is still a resolution coming. We are watching closely, but trying to ignore much of the noise. Yes, politicians are playing with fire, but we again feel they will find some type of compromised resolution.

Expect a Bumpy Ride

We are in the early stages of earnings season, however the dominant story is the Sunday morning talk shows where the politicians use the TV Airwaves to speak….and markets move accordingly.  Expecting a bumpy ride for the next few weeks is our recommendation, if no bumps exist, all the better….diversification again wins, in our opinion. By the way…earnings are doing ok so far too….not that anyone is watching … Grrrrrr !!

Have a Great Day!

John Kvale