newsletter
Economic News
October 2009
This month we sent out the Fall issue of the KMS Client Quarterly. The first two articles, Recovery, Reassessment, and Realignment
and New “Frontiers” for
Global Equity Investors brought to mind that for many years we have
been recommending value managers, global diversification and some developing
markets exposure. This strategy has
served us well in the past and we believe it will continue to serve us well in
the future.
Exchange Traded Funds (ETF’s), tactical asset management (a modified form of
market timing), annuities and market timing have received a lot of press
recently. We believe the
proliferation of these types of investments and strategies attract individuals
who enjoy more active trading, believe that markets can ultimately be timed, or
are hoping someone can guarantee market performance. We have significant knowledge and experience
with these products and strategies and are prepared to provide guidance on
their use if you know someone who would like to explore their uses and
limitations.
We have mentioned ROTH IRA
conversions before - starting in 2010 you will be able to convert your Traditional
IRA’s to ROTH IRA’s regardless of income level. We have already talked to many clients
about the pros and cons of this strategy and do not find it to be appropriate
for most people for the reasons mentioned in the Client Quarterly. However, the new rule does create an
opportunity for people who want to contribute to a ROTH IRA, but their income
is too high. To explore whether or
not you could benefit from the rule change please give us a call.
A good article in this
quarterly issue on fixed income brings up the point that if someone you know
was excessively stressed over the market these past 18 months, perhaps a visit with
us to discuss asset allocation and the idea of mixing in some fixed income
would be beneficial.
An appropriate quote given
the action of the market the last 18 months – by Winston Churchill:
“Pessimists see problems in every
opportunity. Optimists see
opportunities in every problem.”
Here’s to improving
economic news as we move towards the end of the year! Hard
to imagine it’s only three months away.
Securities
through KMS Financial Services Inc.
520.884.7550
jpw@financial-architects.com brienne@financial-architects.com
3971 E. Paradise Falls,