What is Your Recovery Strategy?
Creating your Recovery Strategy
The week of October 1, 2007 the S&P 500 topped out at 1,557.59, at the close of the market on May 27th 2009 the S&P 500 closed at 893.06. In less than two years the S&P 500 index has shed 664.53 points or roughly 42.6%.
What do you do in a market like this? Do you hang on to assets that are not performing in hopes that they come back, do you shift your asset allocation to a more conservative position, or do you bury what is left, and hope that noone finds it?
Think of this like a crisis - assess the damage that has been done to your investment portfolios. Most people are still burying their heads in the sand, ignoring statements, and relying on the "buy and hold" mentality. Recognize that your retirement, may have been fundamentally shifted from your original plans.
Assess your Assumptions- Are your assumptions about the future now different? Do you need to save more than anticipated for retirement? Will you have to wait longer to retire? Are you willing to live on less money in retirement? What are your assumptions for future growth on your investments? Future Growth for the economy? Are they realistic?
Take Action- Don't try to ignore what is happening! Create a plan to help avoid emotional decisions, and knee jerk reactions.
Call us and let us help you put together a plan. A rational plan, to help you move forward.
Market Valuation vs. Real Returns
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"Muddle-through" trading range for years to come. |
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