304 North Cardinal St.
Dorchester Center, MA 02124
…”Here’s what’s happening: The S&P downgrade of U.S. isn’t so much impacting Treasury yields. Those are as popular as ever. Instead, what we’re seeing is the impact on everything else. For example, the downgrade is leading investors to think that the government won’t rely as heavily on fiscal policy to get the economy moving again. That implies that there will be more monetary accommodation from the Federal Reserve which means low rates for a longer time.”…”This year highlights an important fact about investing: The stock market is not symmetrical and it’s subject to “fat tails.” I’ll explain that again but this time in English. The stock market has a tendency to rise slowly and fall back sharply. Bull markets are long and boring. Bear markets are quick and deadly. In fact, most of the debate about a bear market comes after the low. It moves so fast that folks don’t realize its over.”
“A big thing for our global allocation fund will be as the market goes lower, we will be nibbling into the market each day. Our bonds and gold holdings will be doing well, but when we are rebalancing, we will be rebalancing into equities,” Holt said.
…”As equities get cheaper and cheaper, the question is: As the fire is around you, do you want to take out more insurance, or do you want to start preparing for after the fire?,” said Holt.
Disclaimer: This is not investment advice. Always do your own due diligence. Erik Swarts is not a registered investment advisor. Under no circumstances should any content from this website be used or interpreted as a recommendation for any investment or trading approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor.