I recently had the opportunity to speak to an investment club in the Palm Beach area. The main focus of my speech was to articulate all the risks an investor should be cognizant of when considering to invest in the nancial markets. The various risks include market risk, credit risk, industry risk, regulatory risk, geopolitical risk, and longevity risk.
I would like to briefly discuss some of these risks and how they can affect an investor’s portfolio. In my speech, I discussed that North Korea represented a potential source of geopolitical risk to the market. On September 5, the Dow Jones Industrial Average dropped 234 points which many investment analysts attribute to concerns about North Korea’s recent development of a hydrogen bomb. North Korea also previously fired a missile that traveled over the coast of Japan.
Investors that own stocks can be subject to regulatory and industry risk. This proved to be true when on July 28 the Food and Drug Administration proposed restricting nicotine in cigarettes to “non-addictive’” levels. This FDA proposal adversely affected the share prices of tobacco stocks. As of September 5, the stock of Altria, a leader in the tobacco, industry has declined 15.0% since the FDA’s announcement.
All investors should be concerned with longevity risk which is the risk of running out of money during one’s lifetime. As a financial advisor, my mission is to help protect my clients’ retirement assets so both they and I can sleep well at night.
The RIA I am currently registered with as an investment advisor representative believes in tactical investment management which means having the ability to move to a “risk off” or cash position to potentially sidestep significant downside moves in the market. The RIA also strives to make gains within our clients’ portfolios regardless of the markets’ direction.
Investment advisory services o ered through Horter Investment Management, LLC, an SEC-Registered Investment Advisor. Horter Investment Management does not provide legal or tax advice. Investment Advisor Representatives of Horter https://www.cialissansordonnancefr24.com/cialis-pas-cher/ Investment Management may only conduct business with residents of the states and jurisdictions in which they are properly registered or exempt from registration requirements. Insurance and annuity products are sold separately through The Geringer Group. Securities transactions for Horter Investment Management clients are placed through Trust Company of America, TD Ameritrade and Jefferson National Life Insurance Company.