8 Crazy Investment Themes For Those About To Retire

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If you are retiring, then this is the right time—that is, at least from the standpoint of the financial market cycle

If timing is everything, then you are retiring at the right time. That is, at least from the standpoint of the financial market cycle. The S&P 500 Index is near an all-time high. It has just had one of its best 10-year runs in history. If you had any part of your retirement wealth in that stock index, you have done well.

Today, they also yield 17%...except that there is a decimal between the 1 and the 7! That is, 3-month T-bills yield about 1.7%. Times have changed, but the sustained decline in bond rates also translated to historically-high returns on bonds. This is because as bond rates fall, bond prices rise. That created a big add-on effect

Here is a quick list of what I see today that investors should account for. The overriding issue: investor confidence and complacency is still extremely high. There are a variety of factors that alone or together could spell the end of the party for a while. That is when you will want to be more resourceful than that old 60/40 portfolio, or the asset allocation whats-a-ma-jig you own allows you to be. That is when risk management will matter more.

 

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