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James Paulson of Wells Capital – his plan to deal with market Volatility - Julio Urvina

James Paulson of Wells Capital – his plan to deal with market Volatility

Ignore short-term volatility, which is hard to predict anyway, and

keep portfolios positioned for a longer-term trend of rising stock prices and higher bond yields.

 

Don’t cut portfolio overweights towards equities, or you risk missing out on long-term potential for stocks.

 

Ride through a 10% correction to get to the next 50% run.

 

There’s no compelling alternative to stocks. If stocks suffer a correction in the next few months, rising yields may be the result, so

 

long-term bonds are not a great option, nor is cash.

 

Increase international diversification. For example, Australian and Canadian stocks relative to the S&P 500 are cheap as chips