How long can a good thing last? This summer has been quite mild in comparison to the past several Texas summers, but as many of us know, one strong high pressure system can change all of that. The stock market and Texas weather may have a few things in common. Over the last 18 months the stock market has been performing well, but how long will it last and is there a bubble brewing?
We at Paragon Financial Advisors manage client assets primarily for the long term, depending on the client’s goals, objectives, and risk tolerance. When constructing an investment portfolio consideration is given to diversification, current investment environment, and which investment vehicle is the best fit for a portfolio (ETFs versus actively managed funds for example). This quarter’s newsletter discusses three different investment topics.
The first article is a market commentary which outlines strengths and weaknesses in the economy. The second article “ETFs Versus Actively Managed Funds” discusses what one should consider when choosing between ETFs and Actively Managed Funds. The last article examines some broad points on types of diversification: the normal diversification between stocks and bonds and the diversification within a certain asset class.
How long will this current bull market last and is there a bubble brewing in the stock market? Only time will tell for sure! Therefore, we will continue to review economic data, asset allocations, and asset diversification to guide us as we move into the remainder of this year and into next year.
David Hailey CTFA® CFP®
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