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Taking action in good financial markets

A note from Kelly Pedersen, CFP®
financial markets strategiesToo many times it’s only when media outlets are reporting that the market has “crashed” that people want to make changes to their portfolio. This behavior – which puts emotions in front of logic – is the foundation of why investor portfolios lag behind advised portfolios.

At CAISSA, we take the opposite approach. As the Dow and the S&P 500 are hitting record highs, now is the time to make strategic wealth management changes. In good markets, we assess the overall allocation and how it supports your financial planning goals. If we are getting a little “frothy” or overweight in one area because the market has been good to us, we take our winnings off the table to a more sensible level. We never leave an investment area entirely, we just pull back our exposure to it. We will take that money and lean into another area that may have been beaten up a bit.

As we read our economic data daily, we also take some of the money and put it to work in areas we think will win from strategies developing at the Federal Reserve and in reaction to government policies or international markets. Think about how you felt in the last quarter of 2018 when the market was down 20%. If that had persisted another 12 months, would you feel good about your investment portfolio? If the answer is no, then consider making changes today instead of waiting for the next dip. That’s when you can sit tight and know you made strategic decisions when times were good.
-Kelly Pedersen


Caissa Wealth Strategies is a fee based registered investment advisory firm, specializing in personal, dynamic wealth management. Based in Bloomington, Minnesota, Caissa financial planning professionals provide individualized strategies for every client. You can expect more from CAISSA, and in turn, you will get a fiercely loyal advocate on your side. For more news and information on wealth management solutions, visit Caissa Wealth.