Dan Celia

Financial Issues

July-August 2015 – Q: There seems to be great concern with how the economy is going to perform in 2015. What should we do with our investments?

A: Count me among those who are concerned with the economic outlook for this year.

First, don’t believe that our economy is as vibrant as some have said. In fact, that has not been the case for quite some time.

In my opinion, the markets appear strong only as a result of false positives, not because of sound fundamentals. More and more market observers seem to be reaching that same conclusion.

With this in mind, I believe anyone with investments should be cautious, especially those nearing retirement. 

If you are approaching retirement, I suggest that you have a significant portion – as much as 60% to 70% of your investments – in money market accounts. These accounts will not be earning much, but wise investors will remember that there is great value in not losing principal. This word of caution needs to be heeded, especially for the remainder of 2015.
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Dan Celia has been in financial management for more than 30 years. He works closely with AFA Foundation and can be heard six days a week on AFR Talk (afr.net).

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