Don't run from a bear
I got a macabre kick out of this news release:
Hello,
Many investors are reeling from the past year and wondering what to do in this recessionary environment. In a new report, Dean Junkans, chief investment officer at Wells Fargo Private Bank, offers seven specific “to-dos” for investors buffeted by 2008:
1. Don’t run from a bear: if you run now, it will be harder to recover. Stand your ground.
2. Harvest losses to provide for future flexibility: take tax losses now, to offset gains this year or in future years.
3. Revisit your financial plan, including spending, return assumptions, sensitivity to “average” expectations, goals, leverage, education, and opportunities.
4. Question everything, but don’t act on everything: investment “truths” like the value of diversification still hold.
5. Rebalance the portfolio, if necessary: take a look at new and old opportunities across asset types.
6. Revisit risk, but don’t completely abandon it: low risk also means low return.
7. Review your decision-making process: how you construct your portfolio, how you evaluate investments and how each piece fits into your portfolio.
Many investors are reeling from the past year and wondering what to do in this recessionary environment. In a new report, Dean Junkans, chief investment officer at Wells Fargo Private Bank, offers seven specific “to-dos” for investors buffeted by 2008:
1. Don’t run from a bear: if you run now, it will be harder to recover. Stand your ground.
2. Harvest losses to provide for future flexibility: take tax losses now, to offset gains this year or in future years.
3. Revisit your financial plan, including spending, return assumptions, sensitivity to “average” expectations, goals, leverage, education, and opportunities.
4. Question everything, but don’t act on everything: investment “truths” like the value of diversification still hold.
5. Rebalance the portfolio, if necessary: take a look at new and old opportunities across asset types.
6. Revisit risk, but don’t completely abandon it: low risk also means low return.
7. Review your decision-making process: how you construct your portfolio, how you evaluate investments and how each piece fits into your portfolio.
Honestly, I started typing how much I agreed with this headline until I realized it didn’t actually say “Don't run from a beer.”
Posted by: Rochester_Gadfly | 12 December 2008 at 10:37 AM
Honestly, I started typing how much I agreed with this headline until I realized it didn’t actually say “Don't run from a beer.”
Posted by: Rochester_Gadfly | 12 December 2008 at 10:36 AM