A few articles in the news have caught my eye over the last few weeks.
The overriding commentary is on the question of whether, at this late stage of the economic business cycle, will the markets continue to drive higher or are we in for a correction or potentially a major pullback and possible recession? These risks appear even more emphatic given the international trade tension between the US and virtually all its trading partners.
With respect to your investments, pick your position and make sure you are satisfied with the asset allocation of your investment portfolio and your ability to be comfortable or cope with whatever the outcome is. From experience and observation, successful prediction of the short-term duration and timing of the investment markets on a consistent and recurrent basis has proven elusive for even the most informed and astute market professional.
Over the long-term, equity markets even with their ups and downs have provided reasonable and successful outcomes for investors. However, if you have a limited time horizon and especially where you are drawing income from your investments, it may be prudent to pursue a bit more of a conservative position. With an overweight equity emphasis, a significant drawdown combined with a potentially slow or multi-year market recovery could leave you in a challenged position to continue to finance your income requirements.
While that particular scenario may be an outlier in terms of probability, its impact could cause some difficulty. Thus, due discussion is in order with your Financial Advisor to assist in meeting your financial goals.
Estate Planning Misconceptions
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