Financial advisors and financial planners have sought various programs to provide clients protection from systematic risk, also known as market risk. Various asset allocation strategies have been used with limited success when extreme market movements and “black swans” occur.
Why Your CPA Prefers Index Annuities For A Portion Of Your Retirement Portfolio
Despite the recent stock market rally, an alarming number of investors don’t plan to ever invest in stocks again, according to a recent survey by Prudential Financial. The survey polled 1,274 Americans between the ages of 35 and 70 in an online survey through January 5 and found that 58 percent have “lost faith in the stock market” and a staggering 44 percent never plan to invest in stocks again.
The study showed that investors are re-examining their financial and retirement strategies in light of the financial crisis, and they feel that new strategies are needed to make up for losses.
Prudential found that 72 percent agree that they need a new approach, with 61 percent of those polled indicating that they think the principles of investment diversification and asset allocation have changed, and many choosing a less aggressive investment strategy. Such strategies often incorporate FDIC-insured high-yield savings vehicles such as money market accounts and CDs.
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