By Nadav Baum, Executive Vice President, The Nadav Baum Group, BPU Investment Management, Inc.
What’s an investor to do?
Money market funds are paying historically low rates, unemployment is high and the stock market feels like a roller coaster with no direction. Now more than ever, you need to be thinking long-term and not let day-to-day volatility as well as the headline news derail your investment goals and objectives. With so many avenues of financial information and resources readily available to us through the Internet and on cable television, it is no wonder why there is so much confusion among the investing public.
The deluge of information and talking heads increases the uncertainty, instead of bringing information and clarity to the investing public. Let me give you some personal insight on today’s financial markets and potential opportunities, based on my experience advising clients on investment matters for more than 20 years.
For anyone concerned about their investments, the first thing to do is to revisit your strategic investment plan with your advisors. The idea is to see where you are, and get back to the basics, if need be. Proper asset allocation, identifying appropriate levels of income for retirement and review of 401(k), IRA accounts and college savings accounts are good places to start.
Whenever the level of uncertainty is as high is it is today on Wall Street, opportunities tend to exist. Here are some areas of opportunity that I see every day, all with the view of investing not for tomorrow, but for the long-term. Some examples:
- What about the undervalued Fortune 100 companies paying respectable dividends?
- How about municipal bonds, depending on the issuer and your place of residence?
- What about the new era of technology with great franchises which continue to grow?
- What about opportunities in emerging markets like Brazil, India and China?
My point is quite simple, that there are numerous investment opportunities available, but you have to make time to uncover them. A trusted and experienced advisory team is important in assisting investors identify investments during both steady and uncertain times. As I like to remind my clients, we have to be “proactive as opposed to reactive.”
Remember, investing is a long-term proposition and patience is needed. Keep in mind, not all opportunities or strategies will work for everyone, as each investor and their situation is unique. If you have not revisited your investment strategy, do yourself a favor and set-up an appointment with your advisory team. Along with sound investment planning, the successful investor looks for opportunities that best fit his or her investment strategy that may lead the investor to see positive returns again.
Nadav Baum is a partner and shareholder with BPU Investment Management, Inc. He is a frequent CNBC contributor, who specializes in a holistic approach to wealth management, and has been advising high net-worth individuals and their families since 1987. His group (The Nadav Baum Group) uses a team approach to help clients through all aspects and stages of the wealth management cycle… accumulation, distribution and transfer. To contact Nadav Baum, email firstname.lastname@example.org. .