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Home > Money
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Since Baby Boomers have more discretionary income than any other age group,
control 70 percent of the total net worth of American households, which translates
to $7 trillion of wealth, own 80 percent of all money in savings and loans
associations, spend more money disproportionately to the their numbers and account
for 40 percent of total consumer demand, it's no wonder money is an important part
of what we will bring you.
Each issue of Sierra Nevada Boomers will include sound investment and business
advice from area experts. If you have specific questions you would like to see
addressed, please send them along and one of our professionals will be happy to
provide an answer.
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No doubt you have seen what's been happening in the financial markets and are concerned about
how it is affecting your portfolio. The Federal Reserve cut two key interest rates in January,
by three-quarters of a percentage point each, the largest cuts so far this century. The Fed took this unusual step in response
to global fears of a U.S. recession that sparked a massive global stock sell-off the day before.
The world is watching what's going on here because the United States is still the world's leading economy. Other
nations rely heavily on our ability to buy their exports and to provide a stabilizing influence in the global economy. And it
looks as though the world is unhappy with what it sees. The urgency with which the news media is treating this
situation may cause you to think that it's time to do something drastic. Only time can tell us whether the
current concerns about the health of the economy are valid, but now is not the time to let short term developments lure you out of your long-term strategy.
It's impossible to watch this type of stock market volatility without experiencing an emotional reaction. But allowing
your emotions to guide decisions about your portfolio might possibly be the worst move you could make.
This is the time when concepts such as diversification, asset allocation, and risk tolerance come into play. |
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