| With nerves still frayed over the near-collapse of the world economic order in 2008, it’s difficult to be optimistic. But it may be helpful to put the bad news about the American economy in perspective. According to the World Bank, U.S. gross domestic product in 2009 totaled $14.25 trillion. That represented nearly a fifth of the world’s total output of goods and services, even though we have less than one-twentieth of the world’s population. Whatever its current troubles, the U.S. economy remains the world’s mightiest. And though much of the financial and economic news has been bleak—with some respected economists suggesting that recent signs of growth could yet be supplanted by a new downturn—stock prices have continued the strong recovery that began during the spring of 2009. Just as the world was caught off guard by the suddenness and scope of the 2008 collapse, the months ahead could surprise to the upside. Stocks’ resurgence could make this an excellent time to reassess your risk profile. If you learned during the meltdown that you can’t tolerate as much investment risk as you had thought, please make an appointment so we can consider changes to your portfolio. In general, we continue to counsel moderation and a broadly diversified approach to investments during this time of upheaval. |
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