Monday, June 24, 2013

Paragon Perspectives


In this month’s edition of Paragon Perspectives advisor, Jene Tebeaux, commentates on three articles concerning risk.  The first is risk in relation to natural disaster planning, followed by risk in the current market conditions, and lastly how to evaluate your portfolio’s risk from two points of view.
 
June is the beginning of hurricane season along the Gulf Coast. In light of last year’s events (Hurricane Sandy, et al, and tornadoes in Oklahoma), we thought a discussion on disaster planning as it relates to your financial affairs would be appropriate.   The underlying theme for our second quarter newsletter is how our investment portfolios can be affected by unforeseen events and what we might do to mitigate those risks. The time to plan for natural disaster events is before the execution of such a plan is necessary. 
 
When planning for the unexpected in turbulent markets, the risk of sudden change is something that investors need to be aware of. Our current economic climate certainly has the potential for major change: Is the stock market overpriced? Will the Fed reduce QE (quantitate easing)? All factors are in place for an “interesting” time in the financial markets.  This edition of Paragon Perspectives discusses some of the things to keep in mind during such times.
 
Lastly we discusses “risk” and suggest that an investor needs to evaluate portfolio risk from two points of view: 1) the investor’s capacity (ability) to assume risk (i.e. level of assets vs. desired goals), and 2) the investor’s tolerance (willingness) to assume risk. Sometimes these two points of view do not agree for a specific investor. In such cases, the investor needs to reconcile these differences.
 
If you would like to read the newest edition of Paragon Perspectives but did not receive a copy, please email info@paragon-adv.com to request the newest edition of our newsletter.

 
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