March 2016 –Q:Being an election year, will 2016 be a good time to invest, or will the markets continue to be volatile?
A: Election years have historically been good times to invest. However, 2016 is a very different situation, and I believe we will see the markets continue to be volatile.
I am still making a case that the majority of your funds ought to be in cash – cash being money market accounts, savings, or CDs. This has been an excellent strategy during the past year as those who had the majority of their assets in cash did very well compared to those who have risked being in the market.
I know this is a difficult position for those who are retired, since they cannot receive income. But you may want to consider taking 20% of your monies and put them in preferred stocks where you can generate some income. View the video on our website for clarification on preferred vs common stocks.
____________________ 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).
