VIEWS: 9 PAGES: 3 CATEGORY: Business & Economics POSTED ON: 6/25/2010
[...] though, there's plenty of reason for investors to be concerned. [...] when [real estate -related] companies try to refinance their short-term loans, they find it tough to find a lender, putting further pressure on them.
Investment Products Walking the Christina Mazza tightrope of risk, reward Advisers: Diversified portfolios can protect assets By Martin C. Daks When small-business owners and other individuals review their retirement or other investment portfolios, it’s easy to get discouraged. but investors who stay agile and maintain a diversified portfolio that carries some nontraditional holdings may be better able to balance their risks and returns, some experts say. First, though, there’s plenty of reason for investors to be concerned. anyone who had heavy exposure to stocks probably found their holdings hammered in the past year or so, as retail activity slowed, near-cash instruments offered scrawny returns and real estate investments teetered, with a weak, uncertain economy looming over nearly every investment decision. so it’s understandable Focus on future, not why some people freeze current, conditions and do nothing, said Mark Cortazzo, senior partner of PeoPle who are not yet Macro Consulting Group, retired shouldn’t worry too a financial advisory firm much about the bear market, in Parsippany. according to Jerry A. Miccolis, “One new Jersey cli- a senior financial adviser at ent had $1.5 million earn- Brinton Eaton Wealth Advi- ing seven-hundredths of 1 sors, in Madison. percent annually in a tax- “If you’re in your 40s or free money market,” Cor- early 50s, you’ve got decades tazzo said. “he was earn- left on the investment horizon,” ing about $1,000 a year, he said. “So don’t be too worried which is too low of a return if interest rates are low today, on that kind of capital. or if we’re in the late stages of a We were able to suggest recession. The biggest challenge a money-market account, is inflation, not the short-term insured by the FDiC, that economic cycle. If you’re too yields 1.75 percent,” he conservative now, you run a said, referring to protec- greater risk of losing purchasing tion through the Federal power in the future.” Deposit insurance Corp. — Martin C. Daks One of the investment products Cortazzo offers is made up of about one-third bonds, one- third equities and one-third alternative investments, like commodi- ties and currencies.
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