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Bear Market Checklist, You looked, didn’t you?

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Are you still doing the same in your portfolio as last September 2015?

  • Do you think that is still appropriate or don’t know?
  • But you didn’t see the blog posts, not your fault.

So, what do you do now?

  • Maybe, read the blog posts outlined below.
  • Develop a course of action based upon your situation and implement.

Not your thing, that’s okay, I don’t work on my car on the weekends either.

  • Give me a call, can’t hurt, might even be useful.
  • I might be able to help, maybe even have a virtual cup of coffee together.

We can go over your strategy and have a discrete confidential session about your situation.

  • No cost for the consultation and I promise to be polite.
  • Maybe you are allocated as you should be. Maybe not?

Call when you can. 719-219-8444,

Bob

p.s. been writing about this for awhile…

Blog Post Excerpts

[Blog Post] “You’ve gotta ask yourself one question: “Do I feel lucky? Well, do ya?” Dirty Harry, 1971   dated September 24, 2015

“I’m not preaching heresy, I’m just saying.”  

  • Maybe a phone call suggesting a defensive reallocation in your portfolio might be warranted from/to your advisor. There is a body of work from Guggenheim http://bit.ly/1iH0M2Q that suggests in a more significant decline asset classes may correlate (they go down together) which gets in the way of diversifying away risk in your portfolio. Even computer driven (Robo Advisors) may find challenges in periods of heightened volatility http://bit.ly/1j0rK5A

 

[Blog Post] Portfolio Diversification Challenge   dated September 24, 2015  

“If it is not possible to determine market condition, I suggest vigilance and a reasonable stop loss strategy.  Sometimes allocating to cash with a solid reentry discipline can be a viable strategy too.”   

  • The research from Guggenheim further suggests, I will quote directly-“After 2008, many investors suggested that diversification stopped working. We believe this suggestion is incorrect and is premised upon a misunderstanding of how asset class diversification works. Most asset classes possess little inherent diversification quality. Their diversification benefits are derived from buyer and seller behavior, which can change over time. Diversification did not stop working in 2008; buyer and seller behavior adapted to evolving financial markets.” You might want to read that paragraph again.

 

[Blog Post] Retirement Calculator Mistakes   dated December 24, 2015

“If it is not possible using a retirement calculator to determine market condition and an appropriate portfolio strategy for that market condition, vigilance and a reasonable stop loss strategy may help remedy this retirement calculator failure.”    

I thought it was important enough to re-title the blog post and republish and bullet point the key takeaways.

  1. Retirement calculators used to determine asset allocation may not keep a retirement portfolio from losing value as some might presume
  2. Asset allocation strategies and retirement calculators may fail to provide risk management
  3. Retirement calculators may miss the effects of an interest rate increase on a bond allocation or fail to calculate the increase in longevity of the retiree.Many retirement portfolios and retirees can ill afford an increased degree of volatility.
  4. Retirement calculators may well be ill equipped to adjust in a timely fashion to investor behavioral changes.  
  5. If it is not possible using a retirement calculator to determine market condition and an appropriate portfolio strategy for that market condition, vigilance and a reasonable stop loss strategy may help remedy this retirement calculator failure. 
  6. Sometimes allocating a portion to a money market with a solid reentry discipline can be a viable strategy too.

 

[Blog Post] Asset Allocation Should You Check Your Strategy   dated February 11, 2016

“After looking over the charts below you will notice, EVERY ONE of the charts is trading below its 20 month EMA.  That should cause you to consider having a strategy/allocation review or discussion.”  

I even highlighted the post in red to stress the gravity.

 

[Blog Post] Bear Market? What Should You Do?   dated February 17, 2016

“This is a short list of actions, review your strategy.”  

  1. Review your holdings, identify laggards and poor performers, consider selling.
  2. Tighten your stops; sell when the stop is hit.
  3. Increase your cash levels.
  4. Increase allocation to high quality bonds
  5. If you are uncomfortable and worrying about the market, sell aggressive positions down to your sleep at night levels.
  6. Consider short or 1x inverse instruments.
  7. Consider an allocation to a precious metals asset class.

If you are still unsure about your asset allocation strategy in light of the information presented you should call Bob at RS Asset Management, probably now, while you are thinking about it, for a free one-hour consultation. We can talk about your situation in detail, its free and confidential. Call 719-219-8444.

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While assumptions are based on historical index data, past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Assumed rates of return are hypothetical which do not reflect the deduction of fees and charges inherent to investing in securities are not representative of any specific securities. Your results will vary.

Securities offered through LPL Financial, Member FINRA/SIPC  Investment advice offered through RS Asset Management, LLC, a registered investment advisor and separate entity from LPL Financial.  The information if contained in an email message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete.

 

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