I hope you all have survived the blistering summer heat. Record high electric bills were an unwelcomed addition to the already long list of higher prices in the economy. While I don't know how to fix the economic situation (I did not major in nor enjoy my macro-economics courses as they were far too abstract for me) I do know how to take steps to avoid serious erosion in your investment accounts. Although as a general rule we cannot avoid market exposure completely, we can certainly be choosy and quick to move (like a Heron) when we need to.
That is an advantage to being an investment management firm as opposed to an investment gathering firm. In fact, some investment companies prohibit their advisors from reducing market exposure (and therefore, risk) regardless of what the “market” signals are saying. We, on the other hand, try to listen to what the market is saying and make the appropriate adjustments (re-allocations) accordingly. We rebalance “as needed” rather than “quarterly” (four pre-determined calendar days a year) like many of the Wall Street firms.
In fact, in times like these, many of the larger firms are offering grief management courses to their advisors. This is to help them give comfort to their clients if they are experiencing retirement or financial anxiety due to the declines in their investment value. I'm not saying we are perfect, or can reduce all risk, far from it. But I will say that we are responsive to market shifts and will make a serious effort to reduce that risk when it comes.
It would be our great pleasure to be able to visit with you about any topic in the financial or investment realm and to explore the possibility of providing our services to you and your family. Please reach out to us at LarsenIm.com or call (210) 393-8642. We would enjoy the opportunity to talk with you.