Monday, July 25, 2016

Being smart with $$ - Trump or Clinton for your portfolio - and - Why diversify?


July 25Why diversify our stock holdings when we should just buy the winners? Not long ago it seemed you could never go wrong owning Goldman Sachs and Apple. As heard on CNBC today, owning these two stocks means worse than 20% losses in the last year compared to the nicely diversified large cap stock index that is up 4% in the same time. Why not just buy the winners? Because we never know who they will be until after the fact.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
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www.clientpriority.com

July 22Trump or Clinton? What changes to my investments should I make if it becomes clear one of them is winning? None. The talking heads tell us to make changes but standing pat is usually the best approach. Money Magazine (July 2016) says stocks go up most of the time no matter who is in office and point to several cases where experts advised on dramatic changes to your portfolio based on a new President and such changes would have cost you a fortune. Many pointed to individual stocks they said would be affected. One example Money Mag uses is gunmaker Smith and Wesson that experts said would be pummeled under an Obama presidency but it actually beat the market by a huge amount. Buy-and-hold usually beats market timing. Stick to your plan.
- Larry Pike, CFA, Client Priority Financial Advisors LLC
-
www.clientpriority.com

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