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Have You Hugged Your Asset Allocation Today?

October 28, 2018

First of all, I would like to thank our clients and readers for not panicking about the market. I believe that it is a result of our having reinforced the role of asset allocation in holding volatility to acceptable levels across a spectrum of investment profiles. It is never comfortable to ride through a correction period; however, volatility is the cost of making market returns. It is my opinion that recent volatility is a result of the following uncertainties:

On the plus side:

In spite of the above positive points, market volatility is breathtaking. I see the only way to cope with volatility is with your asset allocation. People who are over-allocated to stocks are the people who end up selling at the bottom and buying back after a run-up, so it is absolutely critical to have an allocation you can live with and not be tempted to sell out on the down days or buy in on the up days in an attempt to chase returns.

As always, we would be happy to discuss any of this with anyone who would like to give us a call or send us an e-mail –

NOTE: Market volatility can significantly affect short-term and long-term performance of any investment or investments or portfolio of investments. Any portfolio of investments, or an individual investment, is subject to market fluctuations and economic conditions. Any portfolio of investments, or an individual investment, may lose value. Every investment has the potential for loss as well as profit. In addition, deposits to or withdrawals from a portfolio by the client may significantly affect investment returns.
Past performance is no guarantee of future results and investment results and principal value will fluctuate so that a portfolio of investments, or an individual investment, when withdrawn or sold, may be worth more or less than their original costs.