Europe has been, and will continue to be, the news event going forward. The effect it has upon the US is irritatingly large, whether we like it or not.
As I’ve stated in previous newsletters, the European Monetary Union (Euro) will have to change drastically for Europe to weather their problems. There will also be some drastic, fundamental ways the relationship between state and citizens will change.
The question is: what does this mean for your investments?
1. I continue to caution against all things Europe
2. Constantly evaluate the allocation of your investments to ensure they’re meeting your risk levels
3. Consider more active management in the coming year. Talk to me about what this might mean.
The 3rd Quarter 2011 is over and I have a slightly longer video this week because I want to address the current environment and how things may shape up going forward.
A big theme is my advice to assess your overall plan and risk tolerance, and also to ensure you’re looking at both positive and negative points of view on the markets instead of just one view over the other.
I send my newsletter and videos on a weekly basis, so if you watch only a few througout the year, at least watch my more comprehensive quarterly videos.
I’m a big fan of “behavioral finance” as many of you know. This includes understanding the importance of our human nature to the decisions we make in our lives–including finance.
This week’s video I talk about the tendency for us to only listen to data that supports our pre-concieved conclusion.
