The political posturing in Washington, combined with global financial uncertainty and a possible debt rating downgrade led us to begin investment style revisions for clients in late July. We feel that disintermediation will attract equity sale dollars to the fixed income side of our portfolios supporting bond prices. Our most aggressive clients are now only 20% in equities with assets preserved barring devaluation of the dollar.
As we point out in our latest book entitled "The Wall Street Casino", applying a tactical aspect to the very efficient "no-load" index funds allow investors to stay invested longer term while also being able to excape the wrath of rotten economies. It will be a while before we return to a more bullish mix.
I still feel that the best insurance against these economic crises lies in overcoming the voter apathy throughout the world. Tune in to http://www.allcan.org/ for a possible plan.