Search for Safety, Safe assets: nowhere to hide?

  • Written by David
  • February 25, 2011 at 10:40 am
  • 1
  • While browsing the Financial Times (FT) today, I came across this article,

    Safe assets: nowhere to hide

    (Click above title to access article)

    I instantly thought, this headline is not true, there are investment strategies to protect investors during sharp market declines.  David Gratke Wealth Advisors has been using such strategies for nearly ten years now.

    How so? Let’s review.

    I do agree with the article that risk abounds everywhere to include, but not limited to:

    • High P/E Ratios
    • High Historical Corporate Profit Margins
    • Global Unrest
    • Housing De leveraging
    • Balance Sheet De leveraging
    • Commodity Price Increases

    I’ve been quite skeptical on market direction for over a year now.

    The link below is to a three minute video from the Financial Times within the same article discussing the issue, search for safety, risk and where to escape risk.

    Search-for-safety

    “Feb 22 2011  The old safe havens are no more. Can any asset be deemed risk-free nowadays? Lex’s John Authers and Edward Hadas discuss whether there is any point searching for safety.  (3m 33sec)”

    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

    Note these series of DGWA blog postings and podcasts below:

    Investment Opportunities in a Down Market June 10, 2009

    (Click above title to access article)

    In this blog article I define what an ‘inverse asset’ is, and their use within client asset allocation strategies.

    Additionally, I define and discuss the use of inverse assets in a podcast on my website simply titled “Inverse Assets”. CLICK HERE to listen to the podcast.

    Conclusion:

    There are investment strategies to protect portfolios from large loss during major market declines as we at DGWA have been using such strategies, as stated above, for nearly ten years now. And with that said, the coffee is on us…

    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

 

1 Comment

 

  1. Pingback : From the Desk of David Gratke » Blog Archive » The Lost Decade for S&P 500 Index, an Update ‘Eleven Years After’

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