Do you know how to ride the Trump-Coaster?
If you don’t know how to answer that, don’t worry. I just made up the phrase. I have been thinking of the best way to describe the market’s action since the election. It’s been a roller coaster, primarily dependent on what President Trump says…or tweets, and I came up with Trump-Coaster! This will not make for a very fun ride for investors focusing on retirement.
We had a nice rally based on the new president’s proposed policies of lower taxes and less regulation. The market likes talk like that. What it doesn’t like are distractions like trade wars, fights with our allies that will send them to align with China and arguments with the media on meaningless statistics like the inauguration body count or how many illegals didn’t vote for him.
Now that he’s in, photo ops aren’t going to cover it any more. Investors want action. The problem for investors is that it will take 6 -12 months to see any progress. So, we may get the worst market of all. One with a lot of whipsawing back and forth, increased volatility that’ll go nowhere fast.
This is the worst possible investment climate for the buy-and-hold (buy-and-hope!) investor. In this type of market, tactical hands on investment management will prove to be the only salvation.
Given the increased volatility and added uncertainty, retirees, as well as those close to retirement, must keep to their retirement master plan. If you don’t have one or if yours needs an update, get on it before it’s too late. Or, work with a Retirement Advisor!
Always manage risk so you are getting the best returns based on what you need, but with the least risk possible. Or what I like to call “invest for need, not for greed”™. It’s what we try to do for our clients every day.
And that’s where we can help. Now is the time to review, not only your portfolio, but your overall master plan. Things have changed and it’s time to Trump up your portfolio!
As always, feel free to contact me with any comments or questions.