Global markets got a burst of energy this past week from the prospects of relief to the extreme stress in Europe. It is likely we will see some agreement from our fearful leaders on the debt ceiling debate in the very near future, which will likely be greeted with some short-term market upturn. I believe any debt ceiling agreement will bring short-lived market relief since the recent, global economic reports have had short-lived upside. This response will likely be a result of how quickly investors are digesting news. Investors are realizing that many of the political agreements are just desperate measures, and do not address structural problems.
Watching the financial decisions that key government stakeholders make, I couldn’t be more proud to be an independent investment advisor. I read multiple sources each week, am continuously following the research, and watching historical data. The issues in our economy are not blips or bumps in the road… they are long term and substantial – events my grandchildren will read about in history books. While human nature and economic principles remain unchanged, this is not your grandpa’s investment portfolio. He might be telling you that you should continue to ‘Buy and Hold’, or to go put your money in a CD at the bank and let it sit. He may have taken you to a Fidelity office when you were 18 and set you up with an account, but that was then. We’ve reached a new day as both investors and Americans, and our strategies must be more nimble and fluid than what a bank or large-scale, national advisory firm can offer. While there are always risks involved with investing, the one-size-fits-all approach is dangerous.
Please note: My wife and I have been blessed with a healthy pregnancy and we are nearing her due date (Sunday, July 31st). While I will continue to monitor the markets and keep an eye on my client portfolios, it is highly possible that I will not have time to write and send a market commentary next Monday. We appreciate your prayers and understanding as we welcome our new baby girl.
Do you have an investment strategy that seeks to protect your portfolio against volatile economic conditions? Call me to schedule a free review of your current investment portfolio – 913.693.7918.
John P. Chladek, MBA, CFP® is the President of Chladek Wealth Management, LLC, a fee-only financial planning and investment management firm specializing in helping families and couples who are not yet retired realize their financial goals. For more information, visit http://www.chladekwealth.com.