Brexit: Impact on your portfolio

Bobw235

Bobw235

Senior Member
Location
Massachusetts
I've mentioned before that my wife and I use a "fee only" investment advisor (Cadence Wealth Management). They did our financial planning and helped us make the decision to retire earlier than we'd originally planned. They also manage our retirement savings.

Given how the markets reacted in the wake of the Brexit vote (and now we've seen them bounce back too), I wanted to share their newsletter with anyone interested, since its talking about how they're approaching investments in this volatile (and overpriced) market. Some of you might find it interesting.

This link will take you to the newsletter that I received today. Hope you find it informative. http://bit.ly/298hXJN
 

QuickSilver said:
Dow is up to 17,909 as we speak... 215 points to be exact.
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Yes, amazing how cooler heads have prevailed in the market. We've almost regained all that was lost on Friday and Monday. I think this just underscores the importance of a balanced portfolio.
 

There is a huge amount of "cash" sitting on the sidelines...from investors who "panicked". Some of the analysts are calling a substantial gain in the markets in coming days and weeks...as that cash flows back into the markets.
 
I had to go out to the garage and count the change in the ashtray of the car - still $4.83 so I'm good!
 
I have always been one to ride out the storms that occasionally hit the market, but it's nice now that I have someone who has his eye on the portfolio day in and day out and can more quickly adapt when necessary. It may not be the most exciting portfolio, but he's doing well for my wife and me at this critical stage in our lives. I sleep better knowing that we don't experience as much of the market volatility.
 
Bobw235 said:
I have always been one to ride out the storms that occasionally hit the market, but it's nice now that I have someone who has his eye on the portfolio day in and day out and can more quickly adapt when necessary. It may not be the most exciting portfolio, but he's doing well for my wife and me at this critical stage in our lives. I sleep better knowing that we don't experience as much of the market volatility.
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My investment with the S&P is a yearly thing, which means that if it did well during my contract I get a fair return.
That being said, my contract comes up every July 31st. Now I am wondering if I should move my $$$ ????
 
An individual investor trying to keep up with a volatile market is almost impossible. The big funds conduct thousands of trades in milliseconds, whereas the little guy is usually left behind. The best approach is to diversify in stable funds or companies, and make only minor changes as time passes.
 
i am higher then ever . you got to love folks reactions to these things . this is why most small investors fail to get even the returns the investments they were in got . they exhibit bad investor behavior , lose money , then blame the markets .
 
mathjak107 said:
i am higher then ever . you got to love folks reactions to these things . this is why most small investors fail to get even the returns the investments they were in got . they exhibit bad investor behavior , lose money , then blame the markets .
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For as long as I've been investing, I've never been prone to panic selling. I've always trusted that if I had a well-balanced portfolio and had the time to wait out the bad spells, I'd be fine. For the last several years I've had an advisor who has put together what I feel is a solid plan. A portion of the portfolio is a typical balanced model (more geared towards fixed income at this point in our lives), another part of the portfolio is designed to take advantage of current market trends, while another looks for contrarian trends. Put them together and I've got a portfolio that performs well with less risk. I sleep better for it.
 
it is human reaction to run for the exits in a fire .

the problem is most of the time you get trampled to death while the fire stayed contained and was put out .

in fact if you look at the morningstar data which tracks investor money the amount of folks fleeing balanced funds is just as bad as in the aggressive funds .

i am in the camp that believes while investing is easy today using index funds , exhibiting good investor behavior is not easy for most .


i believe most folks would do better spending the money for some form of hand holding then trying to do this on their own .

most folks do not have an interest in this stuff and are not like the folks you see in forums who make investing an interest or hobby . in fact i am not surprised by the lack of interest in financial matters in this forum .

there are lots of posts pertaining to games but very few pertaining to financial well being or strategy for surviving retirement financially .

so most everyday folks would do better if they could get good financial advice or just have some system in control that removes their emotions .

today we have quite a few robo sites like betterment that do a great job for very little in fee .

i personally use the fidelity insight newsletter which i have done since 1987 and i can put models together in my sleep .

but i am a tinkerer and i end up eventually hurting myself so i know better then to let me be in charge of the moves . i always think i can outsmart the markets at their own game , yet i can't .
 
For a long time I did all the investing on my own, managing our balanced portfolios, but there came a time when the demands of my career began to limit the amount of time I could devote to keeping up. We ended up doing some financial planning with a professional and liked what we saw when it came to his investment approach. Over the last several years he helped me balance our 401(k) investments; we'd tweak them from time to time, but I appreciated that he was always there to advise and never to try to sell me on anything. A friend of mine who was with this advisor bailed out a few years ago when she felt she wasn't getting the kinds of returns that she saw in the S&P 500. She decided to do it on her own, following tips from a newsletter. I'll have to ask her how it's going. For my part, I like knowing that I have an advisor that's a student of the markets (his team is very data/trend driven) who works with me to craft a portfolio that gives a decent return with less risk.

Funny, I always thought that when I retired I'd devote more time to investing. When I was younger it held more interest for me. Now I'm glad I don't have to be as involved as I once was.
 
same here . i devote very little time to our portfolio . except for some fun trading i do , basically i put no time in to our investments . that is why i use the newsletter . i don't want to spend time second guessing my last move or planning the next . we occasionally have some fund swaps in the models i use but they are rare . the newsletter tends to change some funds over time as the bigger picture changes .

but i do spend a lot of time learning about retirement planning methodology , retirement tax planning and different strategy's for getting the highest success rates with the least dependency on the whims of markets and rates
 

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