Broker Check

Quarterly Newsletter- 07/11/19

Dear Clients:

The stock market has been roaring higher for the past 10 years now and breaking all prior records of longevity. In addition to this record performance, volatility (the measurement of the stock market’s movement up and down) has been tracking near historical lows. In this type of environment, it is often easy for us to lose focus and forget about an important factor concerning our portfolio- risk tolerance. In other words, how much are we willing to see our portfolio decline in value before we cry uncle and have the urge to sell.

It brings us to the question- do you know what your risk tolerance is?

Your risk tolerance and the composition of your portfolio will dictate how much potential loss you will incur when the next downturn in the stock market happens. A portfolio too heavily weighted in equities (stocks) has the chance of losing a significant amount of value in a market downturn; meanwhile, a portfolio too heavily weighted in fixed income (bonds) may miss out on opportunities when the equity markets are rising. Having the correct allocation to each one of these asset classes will help ensure your portfolio matches your risk tolerance.

How do you know if your portfolio’s asset allocation is aligned to fit your risk tolerance? What is the proper allocation to stock, bond, preferred stock and cash? We can help provide the solution! Our office has a unique tool we use to combine a portfolio analysis and risk assessment into one, which assigns a risk score to both you and your portfolio. This allows us to make sure your portfolio and tolerance for risk are aligned. We can also use this program to make specific recommendations for changes to your portfolio, as well as show you a retirement map for how long you can expect your money to last once you retire.

If you are interested in finding out what your risk tolerance is, or if you would like to have a portfolio analysis or retirement map put together, please let us know! We would be more than happy to review your portfolio and do a risk analysis for you.


Craig J. Rosenblatt, CPA

Financial Advisor

Insurance License #0E18620

The views stated in this letter are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to Volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Asset allocation, which I driven by complex mathematical models, should not be confused with eh much simpler concept of diversification.