March 1st, 2018 | MoneyLife
Time for Investors to Re-Evaluate Their Portfolios? Yes, Says Gregg Fisher in Interview
The return of stock volatility in February—after years of relative quiescence—rattled investors. It made them sit up and take notice—which they should be doing, says Gregg S. Fisher, Gerstein Fisher Founder, Portfolio Manager & Head of Research, in a February 12 interview with Chuck Jaffe, host of financial radio’s long-running “Money Life” program.
On the one hand, the market correction has been long in coming. Over the past five years, Gregg reminds us, market returns were way above average, and volatility far below its norm. And it had been years since we’d last seen even a 10% correction, which usually occurs about every six months.
On the other hand, Gregg wonders whether investors are prepared for, say, a 30% correction. (These have occurred, on average, about every seven years—but it’s been nine so far since the last one.) A 30% correction would mean about an 8,000-point drop in the Dow Industrials. Asks Gregg, can you handle that?
At Gerstein Fisher, we invest for the long term and we never call market turns. But we do pay attention every day. And since of late, many investors have earned so much more than they expected, this may be a perfect time for some to take some risk off the table. For investors, it’s a time to re-assess their exposures to volatility.
Listen to the full interview by clicking below (Gregg’s interview takes place from approximately 8:45 to 19:30).