Removing risks from your portfolio

Removing risks from your portfolio

August 13, 2019

Let’s talk about risks. With the threat of trade wars between China and the U.S. looming and the spread between the 2-year and 10-year Treasury yield narrowed to only 6 basis points today near its lowest since 2007 the odds that we’re closer to a potential recession have increased.

Mike Wilson, Morgan Stanley’s chief U.S. equity strategist said “The bear is alive and kicking. We think the failed breakout last weeks for the S&P 500 confirms we are still mired in a cyclical bear market.”

The Dow closed today down 389.73 points after China allowed its currency to drop against the dollar to a level not seen since 2008. The markets are also sensitive to the protest gaining steam in Hong Kong which could turn into something much larger adding to the fears.

So, if you have significant gains in your portfolio why not consider removing some of the market risks currently from your portfolio? You can still participate in a growing economy but with no market risks by being linked to an index and only participating in the positive years and never in a negative year.  

There are strategies available where you can participate up to 150% in an index but without the risk and have gains locked in every other year or annually depending on the strategy. This can all be done with no fees. If want to know how this can be done contact my office for more information.