Lewis Wealth Management

Investment Management, Financial Planning, Consulting

Archive for July 2015

Climing the Wall of Worry

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Financial markets have recently been roiled by Greece, China, Puerto Rico, and the Fed.

The debt crisis in Greece is ongoing, but it is well contained and not large enough for long-term investors to change course. The same can be said about the Puerto Rican debt crisis.

China’s stock market reached bear market territory last week. This 30% decline followed a 135% rise over the preceding 12 months. China is an important source of global growth, but only about 3% of the world’s market capitalization. They will find a bottom and grow again. Be careful not to over expose your portfolio to this nascent market.

The Fed will likely begin to raise interest rates in September. This will cause distortions in the bond and stock markets. We have shifted our bond portfolio to short-duration and high-quality bonds to minimize the impact of Fed policy.

When considering what to do in the face of bad news, remember that long-term investors do better than short-term speculators, and that most of us have a long-term investment horizon.

Showing restraint in the face of market stress will serve you well in the long run.

For a more detailed discussion, please visit our website and take a look at our Quarterly Newsletter. http://www.LewisWM.com

Thanks, Austin Lewis

Written by Lewis Wealth Management

July 20, 2015 at 3:31 pm

Posted in Uncategorized