Right now, it appears that cash is king. As the stock market has continued to come under pressure it appears more and more likely that a full blown recession may very well be at hand. As a result, you may want to consider shifting your focus (if you haven't already) from "growth" to "preservation of capital".
Granted, if you are a client of ours, we have already made the strategic and tactical adjustments for you. But what's the difference?
While there is a lot to be said for being a long-term investor and not getting spooked just because the market corrects, there is also a fair amount of wisdom in seeking the shelter of cash during periods of market calamity. We must remember, that every long-term bear market first started as a short-term pullback.
This is why we are big advocates for having both a long-term strategic component to your investment portfolio as well as a short-term tactical component. However, there are times when both the long-term and the short-term models are both advocating for the safety of cash ... but they get there in different time frames. This is intentional.
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