Wisdom From a Recent Seminar Market Corrections and Your Portfolio
As you may know, Retirement Planning Strategies often hosts seminars based on topics that clients are interested in. On Nov. 16, we held a seminar on market corrections and their impact on investment portfolios. With the market at an all-time high, many people are wondering when things will take a turn. Should they be worried? Is another 2008 on the horizon? How can they insulate their portfolio against risk? These were some of the questions we sought to answer. But before we recap those talking points, it’s probably best to give a broad overview on what a market correction is. Generally speaking, a correction occurs when a stock experiences a reverse movement of at least 10 percent. Unlike crashes, corrections are usually small, temporary downturns, offsetting periods of growth. These declines are a fundamental part of capitalism and shouldn’t cause undue concern for investors.
The first tenet of strong investment strategy is always to remain diversified. It can be easy to focus on insane returns when the market is strong. Unabated, extreme growth, however, is not sustainable over your investment lifespan. Diversification of assets allows investors to limit their exposure to risk. If a company’s stock, or an entire segment of the market, experiences a correction, the other portions of your portfolio will minimize the losses you suffer. These corrections can hurt you more as you approach retirement, so if you suspect some of your holdings may undergo a correction, it is worth considering moving into more stable investments. It’s important to remember that corrections are a natural part of our economy, and are not a guaranteed sign of long-term instability or the onset of a bear market. The housing crash in 2008 was caused by a convergence of factors that are not likely to be repeated anytime soon. The historic nature of that crash underscores just what a rarity it was. Prudent investment strategy is always the best way to defend yourself from market corrections. To ensure your portfolio is healthy, we recommend scheduling an
analysis and review of your portfolio with Retirement Planning Strategies. Once we see where your holdings are allocated, we can recommend a course of actions that best meets your needs.
Train Your
BRAIN!
CHEESE FONDUE EASY HOLIDAY PARTY Scrambling to find something for the holiday potluck? This fondue is sure to impress!
Recipe inspired by PinchofYum.com.
INGREDIENTS
• ¾ cup dry white wine • 1 tablespoon cornstarch • 1 (8-ounce) package sliced Swiss cheese
• 1 clove garlic • Salt to taste • Foods to dip (apple slices, bread cubes, roasted vegetables, etc.)
DIRECTIONS
1. In a large bowl, whisk together wine and cornstarch. 2. Chop cheese slices into small, uniform pieces. 3. Rub clove of garlic
bottomed pot, then discard. 4. Heat wine mixture over medium-low heat in
whisk gently. Repeat until all cheese is melted. If mixture seems too tight, add 1 tablespoon wine.
the pot until thick and bubbling. Add some cheese and slowly whisk. When nearly smooth, add more cheese and
5. Season with salt and
serve immediately. Keep pot on low heat to keep the fondue dippable.
all over the sides and bottom of a heavy-
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