I was Two Years Too Early.. Preserving Wealth

  • Written by David
  • August 10, 2011 at 11:58 am
  • 0
  • In August 2009, I would begin publishing articles on my blog regarding concern for the amount of debt in the world and how that debt would eventually, and negatively, impact financial markets around the world.  In those posts I began to discuss measures I would take to protect client portfolios from large loss when markets realized the debts had not gone away. I was two years too early.

    “It has rarely been as clear as it is today that having a good handle on asset valuation requires connecting macro-economic dots, with an emphasis presently on the actions of policy makers and politicians.” Paul Brodsky, August 8, 2011 h/t thebigpicture.com


    First Post:

    Commentary | Where do the markets go from here?

    Thursday, August 20th, 2009

    “What gives me comfort for my clients within my practice, is that I have asset allocation strategies that have endured much better than the S&P 500 index during the past ten years where the S&P 500 index returned a negative -1.3% annually.

    In coming months, I may be recommending client’s shift more of their assets to wealth preservation and absolute return strategies along with continued use of inverse asset classes for such possible ‘range bound’ markets.”

    Second Post:

    Dow 9800, What is one to do now?

    Monday, September 28th, 2009

    Investor Solutions

    • Wealth Preservation Strategies
    • Absolute Return Strategies
    • Inverse Asset Class Strategies

    What does your portfolio look like against this current economic, political and social environment?

    Ask for a proposal or a review of your plan today.

    “Required Reading”

    As for the market, I think that the markets are overvalued given the prospects for  economic growth. When I read articles about a possible, sizable correction (upwards of 20%) I don’t find too much to fault in those articles.

    Third Post:

    2011 Market Predictions? No; Informed Opinions? Yes!

    Thursday, December 23rd, 2010

    #10 Good Reasons To Be Worried About The Stock Market In 2011

    “I continue to exercise prudence and care in client asset allocations using wealth preservation and inverse asset strategies to protect from potential large market losses.”

    Fourth Post:

    Search for Safety, Safe assets: nowhere to hide?

    Friday, February 25th, 2011

    David Gratke Wealth Advisors, LLC has been managing risk, and taking risk off ‘the table’ with sound asset allocation strategies from partner investment organizations for many years now. This strategy is not new to us.

    DGWA has at its disposal, on behalf of clients, both individuals and corporate 401(k) plans, numerous investment allocation strategies for risk reduction to include, but not limited to:

    • Wealth Preservation Strategies
    • Absolute Return Strategies
    • Inverse Asset Strategies
    • Alternative Investments such as Managed Futures

    Fifth Post:

    The Lost Decade for S&P 500 Index, an Update ‘Eleven Years After’

    Tuesday, May 24th, 2011

    Clients of David Gratke Wealth Advisors, did not incur these tremendous market losses as shown in the above chart during 2008-2009. Please visit my blog articles and podcasts (below) on wealth preservation and the use of asset classes that protect portfolios from large loss during market declines.

    Sixth Post:

    Managed Futures in the Portfolio; Why and Why Now?

    Wednesday, June 8th, 2011

    For some time I have been monitoring/researching additional ways to increase client return, while not subjecting their portfolios to undo downside market risk;

    Managed Futures offers my clients access to returns during extended time periods when traditional asset classes (i.e. stocks) have not generated positive returns. 2.) Interest rates are at multi-generational historic lows; going forward, using bonds to protect a portfolio from risk, or to generate return from falling interest rates, is ‘not in the cards’. In a rising interest rate environment, bonds will present much risk. (Example, a two percent rise in interest rates will cause a bond with a ten year maturity to lose 20% of it’s market value.) Managed Futures now and for the reasons that have been illuminated above. Asset allocation percentages vary by investor goals and objectives.

    In Summary….

    A Cup of Coffee and a Second Opinion

    When the markets turn as volatile and confusing as they have over the past year, even the most patient investors may come to question the wisdom of the investment plan that they’ve been following.

    At David Gratke Wealth Advisors, LLC, we’ve seen a lot of difficult markets come and go over the past twenty-three years. And we can certainly empathize with people who find the current environment troublesome and disturbing. We’d like to help, if we can, and to that end, here’s what we offer, a cup of coffee, and a second opinion.

    By appointment, you’re welcome to come in and sit with us for a while. We’ll ask you to outline your financial goals – what your investment portfolio is intended to do for you. Then we’ll review the portfolio for and with you.

    If we think your investments continue to be well-suited to your long-term goals – in spite of the current market turmoil – we’ll gladly tell you so, and send you on your way. If, on the other hand, we think some of your investments no longer fit with your goals, we’ll explain why, in plain English. And, if you like, we’ll recommend some alternatives.

    Either way, the coffee is on us. Thanks for reading.

    David Gratke


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