Recently I was asked what advice Id give to financial planners and their clients to navigate the current environment. Having thought more about it, I thought Id share my battle plan.
First we must acknowledge that asset prices across virtually every market are either at fair value or significantly over-valued. As US investor Jayme Wiggins recently said in an interview in Value Investor Insight, we think [US small cap] valuations today make those we saw in the housing bubble look tepid.
If history is a guide, that means investing in passive strategies right now guarantees pygmy returns at best, and large losses at worst. Investing in an index fund or ETF that mimics the S&P500 was intelligent in 2008/2009 when valuatio…
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