Today Larry Fink the CEO of Blackrock, recommended that most investors put 100% of their investments in stocks. While the article mentions that this is against the advice of most money managers who recommend a 60/40 stock/bond allocation, I at least applaud that he isn’t afraid to show his conviction when the relative value of stocks versus bonds is at these extreme levels. The problem with mutual funds and most investment advisors is that they are hamstrung into what they can do for their clients. Many times they just don’t have the leeway from management to delve into things like options, or to even pick individual securities as opposed to a cookie cutter mutual fund portfolio. Our utilization of selling options on a value investing basis adds a fixed income type feature to your accounts which is just not an option that most firms offer. Because I am the CEO and Chief Investment Officer there is nobody pressuring me to put you in any “alternative products” with higher fees, or constraining our investment choices to easier, less time consuming products such as ETF’s, or mutual funds. Here is the article: http://www.bloomberg.com/news/2012-02-08/blackrock-s-fink-says-investors-should-be-100-in-equities-take-more-risk.html
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.