The summer in Minnesota is a special time. When the weather gets warm and the kids and grandkids are out of school, even the most routine investment-management decisions become a bother.
The summer of 2013 is fast becoming a high risk investment environment. Interest rates were around all-time lows just a few months ago, but have risen over 20% in the last few weeks. There are going to be many surprised bond investors when they receive their May statements in the next week.
The stock markets were also around all-time highs until last week’s big sell off.
A reversal of either of these markets could move multiple investment positions in the wrong direction over the summer months.
Before your investment management attention span is completely gone for the summer, take a good look at your current stock and bond market investments. Spend a few minutes to put in place a logical, organized and disciplined game plan for managing your stock and bond market investments over the next few months.
Your stock and bond market investment gains have been hard-earned over the last couple of years. Don’t let those gains potentially slip away over a few short weeks this summer.
Your recent investment gains are especially important in your company 401(k), 403(b), or 457(b) retirement-plan accounts. These individual company retirement plan accounts are most times your largest and most neglected stock and bond market investment positions. A game plan to preserve your retirement plan assets now is critical.
Stock markets are sure to fall some time. And history reminds us that stock markets fall at a much faster rate than they rise.
Interest rates were supposed to already have risen by now. The next great fixed-income investment management decision is coming.
Have a summer game plan to make sure that you are not surprised later in the summer.
Ric Lager
Lager & Company, Inc.
