October 2017 Newsletter
As the market continues to make new highs, we find ourselves asking, "where do we go from here?" While no one has a good track record of predicting the future, we don't need a crystal ball to understand where we are today. Just about everyone would agree that stock prices are elevated, prospective returns are low, risks are high, and people are engaging in risk-seeking behavior (just think Bitcoin).
While no one can call the exact top or bottom, a key to successful investing is lightening up when we are closer to the top and loading up when we are closer to the bottom. This is why we, at Eliot Rose, and prominent investors like Warren Buffet, are holding higher levels of cash than usual. Simply put, we believe that the easy money has been made and that people should be taking less risk than they did three, four, and five years ago.
Does this mean that a crash or correction will happen tomorrow? Absolutely not! The market may run for another quarter, year, or more (of course it might not). However, it does mean that it is a time for caution. It is a time to reduce risk, form realistic future return expectations, and allocate more capital to specialized managers who can deliver acceptable returns without proportional increases in risk. This is exactly what we have been doing for our clients and recommend as a prudent course of action for most individuals.
If you have any questions or concerns regarding risk in your portfolio, please don't hesitate to contact us!
In Other News
Eliot Rose Highlights
Jason Gets Married
Jason married the beautiful Dana Rosenfarb on August 26th, 2017 at the Providence Public Library. Dana is a resident psychiatrist practicing at the Harvard-affiliated hospitals and counseling center. She grew up in New Jersey and now resides with Jason and their three-year old puppy, Layla.
Rhode Island Financial Planning Day
Jason, the Pro Bono Chair for the Financial Planning Associated of Rhode Island, helped organize Rhode Island's Inaugural Financial Planning Day at the Cranston Public Library. This event featured highly qualified CFP professionals who volunteered their time to provide free one-on-one counseling and classroom-style educational presentations to the under-served population. You can read more on our blog by clicking here.
Equifax Data Breach - Protect Yourself
In one of the biggest data breaches of all time, Equifax had over 150 million of customer data compromised. Please see our blog post here on how to protect yourself.
Medicare Open Enrollment
Fall Open Enrollment occurs from October 15 to December 7 of every year. This is the time to review and possibly change your coverage beginning in January of 2018. You can learn more about coverage options by clicking here.