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Our read a better idea what to do with these markets how to invest in nanny and certainty on Capitol Hill has the markets -- bumpy ride our next guest says.
Think long term invest now because of volatility -- here to stay John Taylor is CEO of the attacks is global asset management he joins us now from.
Boston are -- that you're not comfortable John welcome to make.
-- firm -- for now they're saying you gotta look down the road.
Yeah I MA -- we had the election people waiting on.
You know realize 500 million people around to various democracies around the world voted this year.
You have the fiscal cliff coming up -- still -- the issues in in in Europe.
Issues going on in China right now and and in other parts of the emerging markets.
So if you look at all these things and if your -- if you're an investor you're saying on my gosh.
They -- wonder why you would like keep waiting to invest.
Volatility is here to stay and I think when investors realised volatility is here to stay they need to be enough.
Differently on time because I feel like there's always a lot of news is always still many things for everything from geopolitics to global economies.
What's going on within individual nations that are constantly influencing investors but.
-- your point here that you can't just look domestically now you have to look at what's going on year.
You have to look at what's going on in China for example better economic news in Asia get markets are still stumbling we've got her own fiscal -- -- it's not.
And you can't put blinders on anymore.
That's exactly correct everything's really into connected right now and what happens in the Chinese economy -- what happens in the European economy.
Does affect what we need to do here and how we need to invest.
When you look around the world you've got 80% of investors institutional investors -- -- nationally.
Believe volatile is here to stay.
Now the difficulty -- you got 77% three out of four Americans that say they don't have enough for retirement but they're also never -- volatility.
Who is so.
-- -- -- under some money and I imitations as a signal would be that strategy.
Well I'm sorry what was that again should average investors follow the institutions.
What do you think of that that -- Yeah you know -- -- -- one of the things it was seen as a lot of institutions have held off.
Have looked that I'm managing risks -- trying to mitigate -- volatility in their own portfolios I think investors need to look at that as well they need to look at building.
A durable portfolio constructing a durable portfolio that allows them to not.
Completely not wary about the election with a fiscal -- What -- looking at this longer term investing you're looking at running through the storms are looking at structures and allow you to mitigate risk.
And have better sleep sleeping at night.
Look do you -- it.
I find your retirement.
Half a percent 1% in in a stable money market fund or or or or bond.
He's gonna need to take some rational regretted getting -- America returns and so I'm holding my portfolio John for a long term I -- should I -- risk on all the way and.
Can't really go crazy and put in send you know high know yeah I can tell them no way that kind of what you circumstances aren't what you horizon as what you're trying to accomplish.
But if you have some longer term horizons.
You should be looking at what type of -- can -- in the portfolio the big dynamic change of last 25 years has been.
That that risk move from I don't wanna miss the upside to again I want to watch my principal I wanna protect my principal.
I want to know it's about risk budgeting now more than about.
The way I need to allocate my investments it's more about how to land management risk highway budget -- -- risk is that what you -- Asset allocation pilot but look at percentages.
Little little less cash you -- are.
-- there's no set percentage because.
It and I don't mean that innate and the 64 he's gone the way of the dinosaur basically what you have now.
Is what is important for your portfolio so you should have some alternatives -- there some risk management.
Types -- structured data replication.
He should have some long only equities and bonds of course and most people do have been you conclude real estate and alternatives.
But you can also look at real estate as a separate type of -- category as well and I -- basically you're looking at what type of risk can you afford to take.
Give a 51015.
Year horizons when he -- that.
And if you know that type of horizon the figure out the risk into you can take.
Try to get returns you need to get the results you want at the end of the day John Taylor thanks.
Appreciate it -- my pleasure that I don't know what --
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