Insights & News

May 2013
Investment Strategy

Spring Strategy Update

In the first five months of this year, the S&P 500 stock price index has soared 16.4%! To put that gain in some perspective, it’s five times the 3.2% average five-month price appreciation for stocks over the past 60 years!

What’s going on? Has the economic outlook brightened that much? Should we own more stocks? Inquiring minds want to know.

The question is especially poignant for FAI clients because we have been keeping our percentage allocations to equities lower than they might have been if we were more optimistic about future stock prices. In this Strategy Update we re-examine the reasons for this cautious investment posture.

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by FAI Wealth Management), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from FAI Wealth Management. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. FAI Wealth Management is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of FAI Wealth Management's current written disclosure statement discussing our advisory services and fees is available for review upon request.

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