Problem #3: Interest Rates at all-time lows
Artificially low interest rates punish the retiree in two ways. First, she cannot obtain a decent yield on her retirement assets thus forcing her into more risky investments. Second, bonds will not be able to provide the diversification or safe harbor play they have historically in a bear market. Yes, rates can go below zero but most economists say it is not sustainable. Eventually, bond yields must rise and in turn cause bond positions to lose value. If this takes place while equity markets decline, it will likely lead to dire consequences in a traditional allocation of stocks and bonds.
The Solution for the Value-trap Perfect Storm
All three of these factors combined may create a perfect storm for retirees, especially those who need an income from their retirement assets. We have developed a sophisticated strategy for dealing with future market volatility using a proprietary trading system that limits losses on all our client positions while consistently locking in gains in profitable positions. Our program is entirely unique allowing us to participate when the market is appreciating yet moving to cash or non-correlated securities when stock markets are declining.
You can click on the links below to learn more about how we do what we do. Or feel free to call us if you would like to discuss how we may help you. You can reach out to us via our Contact Us page or call us at 214 | 943 4300. We would appreciate the opportunity to visit with you.