It is commonly held, at least when it comes to rollercoasters and the stock market, that whatever goes up, must come down. This most recent surge in prices is no exception. We may be near the end of this very long bull run that has been charging strong (with minor setbacks) since 2009. At the same time, consumer confidence is high and the market may continue to climb higher. Does your investment strategy allow for either possibility?
More importantly, can your income plan thrive in either scenario?
The Dow Jones Industrial Average has just broken through the 21,000 point mark for the first time in history. This is one of the longest bull markets we have seen, signaling that we may be at the tail end of it. Indeed there are pundits out there who are calling for a larger correction than we saw at the beginning of last year.
On the other hand, new IPO’s good fundamentals, and a high consumer confidence signal great earnings report potential and future investments. In which case, the market could continue on the upswing.
What are you supposed to believe, and more importantly, what are you supposed to do about it?
At Orange Capital Management, Inc., we believe that most financial advisors, including ourselves, are world experts at our own personal opinions. Meaning, we do not have a crystal ball, and if you know of someone who says they do it’s best to stay away from them.
What we do instead is we create income and investment strategies for our clients based upon up-to-date research and extensive experience. These strategies are designed to weather economic storms so that our client’s retirement income can survive and thrive in different circumstances. If investment performance is lackluster, we want to be sure our client’s income is not negatively impacted. At the same time, if the markets are good, we design certain segments of the strategy to continue working and profiting in the markets.
Our goal is to bring to all of our clients the sophistication of strategic income planning that the high-net worth have benefited from for years. In everyday language, when you are in retirement, your good days should not be dictated by the market being up. If the market is down, that should not cloud over your day and have your worried about your financial strategy. For every season there is a particular facet of the strategy that works to keep your income healthy.
The Dow Jones Industrial Average is at 21,000. It could rise to new heights, or drop quickly. We do not know, but we are prepared. Our clients are prepared. They have strategies that are flexible, yet provide stability in their lives.
If you are tired of trying to listen to the pundits, if you have tried to time the market in the past and have missed the rallies, if your income is either at risk or not able to take advantage of bull markets, it’s time for your wealth to have the strategy that it deserves.