A Note from Our CIO – Q1 2018
The beginning of a new year gives us an opportunity to look back at the prior 12 months and set goals for the coming year. How was 2017 for you? For most, despite the waves of anxiety emanating from Washington D.C., it was a tremendous year from an investment standpoint.
What would be some good investment resolutions to consider for 2018?
1. Separate politics from investing. With hindsight, one of the worst decisions an investor could have made last year was to exit the stock market because of concerns over President Trump. For the year, there was never a sell-off greater than three percent and volatility was at all-time lows, even as presidential tweets were at all-time highs.
2. Be deliberate and thoughtful. If you find it hard to follow resolution number one, then protect yourself by not acting quickly. If you are worried about the stock market, then talk to your advisor and make sure that you are not overweight equities versus your long-term plan. Work gradually. If you want to reduce your equity exposure, then work with your advisor to determine the appropriate target and reduce that weight over time.
3. Diversify into international equities. If you don’t have that exposure yet, then work with your advisor to initiate it. If you have the exposure, then overweight it. For clients who are worried about the U.S. equity market, diversifying into international stocks is a good way to target better valued markets.
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View Other Articles in this Issue:
- Economic Update – Q1 2018
- Market Review – Q1 2018
- Looking Ahead – Q1 2018
- Sector Spotlight - Are Dividends Still In? – Q1 2018
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Investment products mentioned herein including stocks, bonds, and mutual funds may lose value and are not insured or guaranteed by Boston Private Wealth. Boston Private Bank & Trust Company or any affiliates or by the Federal Deposit Insurance Corporation or any other government agency. Past performance is not indicative of future results, which may vary.
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Investing in fixed-income securities may involve certain risks, including the credit quality of individual issuers, possible prepayments, market or economic developments and yields and share price fluctuations due to changes in interest rates.
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