PAY ATTENTION TO WHAT FEDERAL RESERVE IS SAYING – Fed is more forthcoming and transparent – Fed is world’s most powerful financial institution – Fed influences economy and moves markets
ACTION POINT
START TAKING SOME MONEY OFF THE MARKET TABLE
START TAKING SOME MONEY OFF THE MARKET TABLE Several WealthTrack Great Investors, like Don Yacktman and Steven Romick, are holding cash. – They see few undervalued investments – They own very high quality securities
START TAKING SOME MONEY OFF THE MARKET TABLE
START TAKING SOME MONEY OFF THE MARKET TABLE Several WEALTHTRACK Great Investors, like Don Yacktman and Steven Romick, are holding cash. – They see few undervalued investments – They own very high quality securities
PUT SOME OF YOUR INVESTMENTS ON AUTOPILOT
PUT SOME OF YOUR INVESTMENTS ON AUTOPILOT THE TARGET-DATE FUND APPROACH: > Rebalance between stocks and bonds > Buy when prices drop > Sell when prices rise Takes the emotion out of investing
THINK SAFE AND CHEAP
Whitman’s Basic Investment Rules: Buy Safe and Cheap Safe = Financially Strong Company Cheap = Buy at 30%+ discount to net asset value
CONSIDER QUANTS
CONSIDER QUANTS Consider adding mutual funds run by reputable and leading edge quantitative research and strategy firms. Two masters of the art: – Cliff Asness of AQR Capital Management – Andrew Lo of MIT and AlphaSimplex Group