Markets get cranky — What to Do?

The last few weeks and especially days, market participants have gotten a little cranky and fearful.

What to Do?

Just like navigating 1998, 2001, and 2007, diversification works. Our appropriate allocation to conservative fixed income and equities served us well during those times and should again this time.

  • Markets go down MUCH faster than they go up
  • It has been a long time since we have had a serious (10-20%) pullback- almost 6 years
  • Anyone not involved in a meaningful way in the capital markets for more than six years may be VERY frightened – Not us, we have been here before
  • It would not surprise us to see markets fall another 5-10% OR rally right back
  • Economic numbers are ok
  • Earnings are ok
  • Markets are Frothy as we have said many times- this may be a reversion to more realistic levels
  • Capital Markets are the only place where people get less enthused about buying when items go on Sale

Possible Sale items

8-21-15 EEM

8-21-15 XLE

Not recommendations — Only observations !

Stay cool and have a great Monday!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225


 

What are your thoughts ??

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s