Prime Minister Papandreou’s announcement on Monday that he would hold a referendum on the next austerity package certainly surprised markets. By Thursday, markets have almost recovered from the earlier losses in the week on news that the referendum won’t take place.
This example reminds us that we can’t predict markets in the short term. We also know that bonds yielding 2 to 3% won’t cover inflation and taxes in the long run. Your portfolio takes a balanced approach to both short term market risk and longer term inflation risk to make sure your objectives are met.
What can we control in the short term? By offsetting taxable gains with losses we can ensure your taxes are minimized. Tax loss ‘harvesting’ will be taking place over the coming months.
As always, if you have any questions, don’t hesitate to call.
Tony & Peter