No doubt you are hearing a lot of noise lately regarding Great Britain’s vote to exit the European Union (Brexit). I wanted to drop you a quick note with our thoughts at Silverhawk on this matter.
Should you be concerned regarding Brexit? As far as your investment portfolio is concerned, NO!! We have counseled all of our Private Wealth clients that at Silverhawk, we employ the “Tria Formula℠” as our asset allocation methodology, and when implemented it has been our experience, and our clients’, that the portfolio has many built in “hedges” that minimize stock market volatility. I suggest that you take a brief (4 minute) review of this valuable planning tool at https://silverhawkfinancial.com/tria-formula/
What will happen with Brexit? That will take many months, and more likely many years to determine. The stock market moves much more commonly on emotion than it does on fact. I think that is what we observed on Friday, June 24th, when equity markets around the globe experienced losses, and I expect that we will observe much more of this emotionally-triggered volatility in the days ahead.
Silverhawk has anticipated this, and in fact, for the past 20 months we have held typically about 18-20% of your “Core” portfolio in cash in order to benefit from this increased volatility. This, in combination with the other aspects of your Tria Formula℠, has served to reduce those losses for clients maintaining their total investment portfolio with us.
If you are not certain how Tria Formula℠ looks for your personal situation, or, you have questions of any kind for your Private Wealth Advisor at Silverhawk, please contact them, or me at any time.
Paul J. Mershon,
CFP®, CLU, ChFC, RHU
President, Silverhawk Financial Planning, LLC