Ten Things Investors Should Know Today
If youre a worrier, which I am, you can find new things to worry about in the wake of good things happening, Ed Katz, advisor and senior vice president investments at Wells Fargo in Atlanta, said. That sort of sums-up January in the equity markets. Everyones so gun-shy.
To clear up some misconceptions, Wells Fargo explains some of the less focused-on market trends that investors and advisors should keep in mind and also offers some timely reminders that are relevant no matter what direction the market turns.
Click ahead to see the top ten ideas that advisors and clients should keep in mind featuring commentary and anecdotes from Katzs practice.
The Stock Market Is Up Over 100% Since 2009
"There's no shortage of stuff to worry about," Katz said. "But the markets had a great 2012 and the bottom line is that it's really nice to enjoy it."
Fixed Income Carries Higher Risk Than Usual
Katz had a "sophisticated" client who sold all of his bond funds last week.
"I don't think rates are going to start climbing rapidly any time soon," Katz said. "But once it stats to happen, that's what the firm is worried about. You're going to see clients get concerned, and that fear will then accelerate."
The U.S. Economy Continues To Grow
Municipal Bankruptcies Are Not Widespread
"I would tie the municipal conversation to the point about fixed income," he said. "MUNIs may have less of a default risk, which makes them sort of attractive, but they're still a bond."
Successful Market Timing Is Seldom a Viable Strategy
Katz is in a unique position having partnered with his father who is 82, which keeps them more focused on the long-term and less likely to over-think events.
"The nice thing about having a partner like my 82 year-old dad is that he comes from a different time where he doesn't even have a short term opinion," Katz said.
International Markets Are Improving
"We see international markets continuing to trend higher long-term as economic growth in developed market stabilizes and economic growth in emerging markets accelerates."