In March of 2019, markets celebrated the 10-year anniversary of the bull market that emerged out of the ashes of the Great Recession. On just about any metric, equities as an asset class are exceptionally expensive, offering low return potential over the next 5-10 year.
Further complicating the process, bond yields are worryingly low globally, with tens of trillions of dollars’ worth of bonds trading at negative yields. For those close to retirement, or in fact already retired, the potential for a relatively severe correction in prices looms large. Many have been forced to enhance their allocations to equities due to an inability to generate an adequate income from fixed-income investments. This exposes them to far more volatility and sequence risk than would normally be tolerated near retirement.
These headwinds don’t have to be crippling to your retirement plans, but it is essential to take appropriate action before we see that major correction and/or recession. The 4th quarter of 2018 was a preview, but the risks of low returns are stacking against many investors. Learn how to navigate these waters and to utilize professional investment tools to reduce risk and enhance the yield out of your portfolio!
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