The latest issue of Investment News I pulled from my mailbox included the headline, “Clients Warily Turn to Stocks”. Nothing new, same sad story of folks who have continued to avoid market exposure and thus significant growth and/or recovery in their portfolio. What really caught my attention was the sub-headline: “Unloved bull market has advisers thinking the time is right to put clients’ cash to work.” What? Talk about a hot mess. Two head-shakers here. First, how can a bull market be unloved? There are no fast turtles, healthy hot dogs or unloved market run-ups. Those who have no passion for positive stock returns are those who have gambled with derivatives, shorts, and other investment alternatives of various flavors hoping to capitalize on timing the market correctly. Their opinion doesn’t count. Second SMH (shake-my-head for those not speaking Twitter-language) is “advisers thinking the time is right to put clients’ cash to work”. You think? Talk about a fiduciary crisis born long ago. The time is certainly right, as it was right last month, last year, and at all points in the past. The returns missed over the past 5+ years now are incredible and the opportunity cost of trying to avoid volatility and uncertainty significant. Granted, investors must be prudent in keeping the appropriate amount of cash in an emergency fund. That’s basic financial planning. Beyond that, deploying cash in one’s investment portfolio with an appropriate, long-term stock/bond mix is also a pillar of strong financial planning. As recommended, reiterated and rehashed in every blog before, stay diversified.
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