By Al Emid  

Toronto – Canada

 

 

 

Al Emid has worked in communicating ideas and concepts since beginning his career at an educational television network in 1967.  He is the co-author and author of several financial books, most recently The Emid Report on Volatility 2019 available on all major book sites.

 

 

 

 

 

Chapter 10:

Why These Times Can Be Frightening And Some Solutions

 

 

 

 

 

These are frightening times for investors, especially those nearing retirement age.  There is no point in pretending otherwise.

 

A whole range of factors has created this situation.  The markets this year – are more volatile than previously and the volatility can be expected to continue until at least the next American election.  In fact, it is well within the realm of possibility that market volatility will increase as the election date gets closer. 

 

While there have been some very encouraging employment statistics recently, there have also been some very troubling layoffs.  The news that Deutsche Bank would lay off between 18000 – 20000 employees sent its own shares down and tremors through other European bank stocks.

 

We have also become more aware than ever of the roles played by individuals whom we might never have heard of in earlier years.

 

We might have been somewhat aware of the place of the United States Federal Reserve in the global financial picture but now we have a crystal-clear day-to-day picture.  Until several years ago we would not have known the names or faces of the chieftains of these banks, nor their decisions.  Never in recent history have these executives kept interest rates so far down such a long period and we hear seemingly endless commentary about the impact of their decisions, along with speculation about future rate moves.

 

While all of this may seem bleak, there are several solutions.  Begin with the recognition that no investment plan — even the most carefully crafted plan – is going to work perfectly every day.  It also helps to be brutally honest with yourself about your risk tolerance, which I discussed in another edition.  And it may be that you need a closer, more consultative relationship with your financial advisor.

 

 

 





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