The Surprise of the Decade

Walker, Lewis J.
July 1994
Journal of Financial Planning;Jul94, Vol. 7 Issue 3, p108
Academic Journal
This article examines the need for effective financial asset allocation in the U.S. In the country, investors can secure U.S. Federal Deposit Insurance Co.-guaranteed CD and money market finds in other currencies, including the Swiss franc. Insurance contracts and annuities are available for overseas sources in other currencies or baskets of currencies. U.S. Registered Investment Advisers, registered reps and licensed insurance agents, have limited access to such tools and that needs to change. Regulators remain provincial as the world globalizes. The surprise of the 1990s will be the return of tangibles as a hedge against taxation, inflation and currency depreciation. Tangibles include natural resources such as oil and gas reserves, minerals, real estate and even easing programs such as those involving international shipping containers. Financial planners must prepare their clients for bouts of volatility. They need to profit from it, not be surprised and disturbed. Risk management and the management of client expectations will become critical to one's survival as an advisor. When the strategic shift away from tax-driven and leveraged tangibles of the 1970s brought financial assets to the fore in the 1980s, advisors of clients who were allocated in the wrong director were driven from business, sued or worse.


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