It’s a bear market. What now?
Proactive portfolio management:
Why it’s essential to wealth preservation in a volatile market
These are extraordinary times in our financial markets and economy.
In 2008, the major U.S. stock indexes fell as much as 52%* from their 2007 highs. The housing market has suffered its biggest decline since the 1930s. The nation’s largest investment banks have failed or been absorbed by other institutions. Credit markets have locked up, wreaking havoc on Fortune 500 companies and mom-and-pops alike. Many investors are being advised to pursue “buy and hold” or "hold and hope" investment strategies, which in our view, will prove to be disastrous.
Is the future only doom and gloom?
We don’t think so. While we’re prepared for a lengthy bear market, we believe that when a major bottom arrives, it will present a significant opportunity for those investors who preserve their capital during the downturn.
Hence, Zeller Kern’s Focused Wealth™ Investment Process. Our managed portfolio platform gives our investment committee discretion to determine when and where to invest our clients’ capital. If we expect markets to deteriorate, we can move clients to cash equivalents quickly, as we did earlier in 2008. Our goal is to help preserve clients’ wealth and – when conditions are favorable – position their portfolios for growth. For details, read our Bear Market Wealth Preservation Strategy: Questions & Answers.
A word about how we work. Zeller Kern specializes in individual wealth plans that are integrated, proactively managed, and goal-specific. Unlike most advisors, we do not accept commissions on investment products, so we have zero incentive to keep clients invested. Instead, we are a fee-based firm. Our clients compensate us to make investment decisions, not investments.
If you’re considering a new direction for your wealth plan, now is the time to give us a call. We’ll be happy to answer your questions, explain how we work, and arrange a consultation with one of our advisors. Please contact us at 916-436-8270 or
866-536-6131, or send us an email. Thank you!
*S&P 500 Index at market close from 10/09/2007 – 11/20/2008. Source: Bigcharts.com.