While the U.S. does face political uncertainty domestically, we do not believe you should change your investment strategy. We believe in owning stocks of companies who are investing, growing and continuing to increase their profits and sales. We strongly suggest keeping your fixed investments short at six months to 18 months, which includes CDs and money markets. We feel it is not worth the interest rate risk to buy a 10-year Treasury paying 1.6%, nor is it worth risking your principal for a junk bond.
Given Europe’s current woes, you may consider modifications to your asset allocation in your portfolio. If you have Industrial stocks with exposure in Eastern Europe, you may cut back; however if it were Financial stocks with significant European exposure, you may need to sell. Right now, the big risk is European bonds.
We have a bias to companies that do a majority of their business in the United States. We avoid banks that do a bulk of their business internationally. We favor banks that are proactive and have made moves to protect themselves. General Electric Co. (NYSE: GE) moved much of its international business to Germany during the past few years, and AFLAC (NYSE: AFL) sold almost all of its Greek bonds.
At Henssler Financial we believe you should Live Ready, which means understanding how your investment strategy can weather economic or political uncertainty. If you are concerned about your investment strategy, the experts at Henssler Financial will be glad to help. You may call us at 770-429-9166 or email at experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
