In my First series of posts I concentrated on common "positioning" mistakes people generally do during their lifetimes, which might end up jeopardizing how much money you will have at your disposal during retirement (a very important subject), today however not only I will be talking investments but will be very specific in talking about year 2015.
The current monetary policy cycle is unique in terms of the degree and duration of easing, which raises the question: Is this time different?
We at deVere, think this cycle has more similarities than differences with prior cycles, and so an historical analysis is a useful template.
We think Fed tightening (aka: interest rate rise) this year will drive volatility in asset prices, which otherwise beneļ¬t from the effects of an increasingly healthy economic growth cycle.
In general, based on cross referenced historical data, we expect Treasuries to weaken, US Equities to struggle immediately after the hike, Credit to spread, the US dollar to further strengthen which, in turn, will further weaken commodities.
What does this all mean in laymen terms?
It means that if you don`t adjust your portfolio accordingly you will lose much (or all) the gains of the lasts months.
So the question is: has your Bank/Broker/Financial adviser told you about it and suggested the right strategy for you to profit in the turbulent coming months?
If not, act fast, ask for help, (if you want me to help you out, drop me a line via email or on linked in) whatever you do, do it quickly as changing things 1 months into the correction will not have the same impact (it might even be too late).
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