Hyland Financial Planning - Certified Financial Planner in Green, OH
  • About
    • Our Firm
    • Our Team
    • Our Prices
  • Our Difference
    • Fiduciary Pledge
    • Fee-Only Advisor
  • Who We Help
    • Pre-Retirees
    • About to Retire
    • Retirees
  • How We Help
  • Newsletter
  • Client Center
  • Contact

Newsletter

August 2019 Market Volatility

8/23/2019

 
The state of the US Economy has been featured more prominently in the news lately due to a recent inversion of the yield curve.  An inversion of the yield curve occurs when the 10-Year Treasury yield falls below that of the 2-Year Treasury yield.  For investors, this may cause concern as an inverted yield curve can be considered the canary in the coal mine for a future recession.  This along with the effects of trade and currency wars, have caused markets to be unusually volatile.
Primarily through diligent financial planning at the forefront of a client relationship, Hyland Financial Planning ensures that no more of our client’s assets are put at risk than necessary.  For example, while stock investments may be the growth engine for a client’s portfolio, we only allocate as much to stocks as necessary to help make a financial plan a success.  With exceptions for aggressive portfolios, part of client portfolios are invested in bonds that can serve as a counterbalance, because in many cases like Friday, when stocks sell off, bond prices can rise as investors purchase them as a safe haven.  We also advise maintaining a cash cushion so that assets need not be sold in an emergency to meet your near-term obligations.  Not putting all your eggs in one basket is the pinnacle of diversification.
 
In terms of our process, we believe in taking the emotion and guesswork out of portfolio management.  Rather than trying to figure out if this week's slide will continue or whether it will reverse, we have systematic processes in place, namely “rebalancing” your portfolio back to its target allocations.  This keeps your risk profile in check, but also allows us to lock in profits by selling securities that have appreciated (sell high) and buying securities that have fallen (buy low).  By repeating this process over and over, and especially buying in a sell-off through systematic rebalancing, we put you in a better position to gain than trying to guess the market’s next move.

If you would like to talk in more detail about the current environment or your personal portfolio, please schedule a call on my calendar here.

Sincerely,

Ryan M. Bayonnet, CFP®, MSF
    Subscribe to Our Newsletter

    Author - 
    Ryan Bayonnet

    Ryan Bayonnet is a Certified Financial Planner® and founder of Hyland Financial Planning.

    Archives

    January 2023
    December 2022
    October 2022
    September 2022
    August 2022
    June 2022
    May 2022
    January 2022
    December 2021
    October 2021
    September 2021
    July 2021
    March 2021
    January 2021
    December 2020
    September 2020
    July 2020
    April 2020
    February 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019

    RSS Feed

Schedule a Call With a CFP®
Subscribe to Our Newsletter

Picture
Picture
Picture
Picture
Disclaimer - Privacy Policy - Contact- Schedule a Meeting
Financial Advisor in Green, Ohio
Financial Planner in Green, Ohio
Investment Advisor in Green, Ohio
  • About
    • Our Firm
    • Our Team
    • Our Prices
  • Our Difference
    • Fiduciary Pledge
    • Fee-Only Advisor
  • Who We Help
    • Pre-Retirees
    • About to Retire
    • Retirees
  • How We Help
  • Newsletter
  • Client Center
  • Contact