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.
