Stock markets have been collapsing all over the world. Fear is everywhere and people don’t know how to respond. The causes include geopolitical risk concerns, falling oil prices, economic slowdown, (especially in China) and the collapse of high yield (junk) bonds. In other words, the cracks in the foundation are starting to become apparent. Those in charge of the money systems all over the world are having a hard time keeping it propped up any longer. You could say that it is beginning to collapse under its own weight.
In an interview with Edward Harrison on RT Network last week (December 17), noted billionaire investor, Sam Zell, said that the Fed raised interest rates six to eight months too late. Harrison went on to interview economist, Jim Rickards, who said that the Fed was five to six YEARS too late in raising rates, and that if they did what they should have done, now would be the time to actually CUT interest rates – because of a slowing economy. Both men are predicting a recession in 2016 – due to an economic slowdown all around the world.
As markets continue their collapse, I often hear investment managers say things that are not very reassuring. They say, “we didn’t see this coming”, or they blame some economic crisis (like oil and commodity prices, etc.) for the problem. Investors get frustrated with having to ride the markets up and down while they pay high advisory fees for poor advice and inadequate protection. I can’t blame them.
Take a few minutes to go into your investment account. You may not want to look – but I ask you to do this for a reality check. Look at how your investments have done for 2015 – from January 1 to present. Now as yourself this: are you satisfied with the results you have gotten, especially compared to the risk you have taken and the fees you have paid?
If you are pleased, then stay the course. If you are not, then perhaps you should get a second opinion. Please consider giving me the opportunity to give you that second opinion. The strategies I have developed are a solid alternative for those who are tired of being continually disappointed. Minimizing risk is one of the best ways known to achieve consistent investment results – over time, because your investments are not constantly trying to recover from losses.
Consider using an investment manager located in Seattle who employs a conservative, risk-averse approach to investing, while still growing your investments. If you want to have a conversation, give me a call at 425-891-1388.