Welcome, this page is part of my continuing effort to keep clients and other investors in tune with current market and economic issues that affect investment portfolios and strategies. I have been an Advisor since 1987 and I have learned that investment planning is the pursuit of a moving target as our lives and needs constantly change. In these pages I will share my opinion including investment ideas and strategies, some perspective and a common sense approach. These posts will be timely and informative however if there is something of interest that I can help you with or if you have any feedback please do not hesitate to contact me at jim.whatley@raymondjames.com.
June 23, 2011 - Summer Slide
When I mention a summer slide you are probably thinking of Nashville Shores or the slide at the local pool on a hot summer day! Unfortunately I’m talking about the markets in June & July, “Summer Slide” refers to a now ten-week skid of the major indexes which seems to have been broken in it's current range and hopefully markets will hold here and head back up as we move into the remainder of the summer. “Sell in May and go away” is a saying that has been heard lately as the summer slide continued into July. The DOW (an unmanaged index of 30 large industrial stocks) and the S&P (an unmanaged index of 500 widely held stocks) are both trying to gain their footing after a pull-back in the 6% -8% range from the trading top seen the week of May 2nd. Meanwhile investors are equally nervous about the fixed-income market. Yields are well below anything we have seen in the last 20 years. The media focus on the impending debt ceiling as well as rising interest rates, the sovereignty of Nations and the strength of the lending institutions backing investment grade bonds has the individual investor nervous and uncertain about what to do with investment dollars. In spite of this I still feel that it would be a mistake to be too cautious right here. I feel that risk in a portfolio is something that must be considered given the environment we are in. While individual risk tolerance varies based on the particular individual it makes sense now more than ever to learn about the investments you currently own and determine their level of usefulness in the portfolio. If you are uncomfortable with a particular idea try to learn more about it and understand how the investment works within your portfolio. I have found in my 24 years in this business that knowledge more than anything else overcomes fear of risk and allows the investor to stay committed to the plan during times of underperformance. Is this the end of the pull back? As always and in time, we shall see!
The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Jim Whatley and not necessarily those of RJFS or Raymond James.