I’m Keith DeGreen, and this is your Investors Minute.
Market volatility has increased substantially over the past few weeks.
At our firm we go to cash or to other defensive positions when things get dicey – according to strict valuation protocols. But how quickly can we – and more importantly you – move when it’s time to act?
Index-tracking ETFs may be traded throughout the day, so if we decide to liquidate part or all of our ETF managed portfolios, we can do so in a heartbeat.
But if you own actively-managed mutual funds you can’t liquidate your positions until the end of the day – no matter how early in the day you place your sell order. This can be potentially devastating in a rapidly falling market.
Just another reason why more than $2T dollars have moved from other investments to low-cost ETFs, and why perhaps you should too.
FEE-ONLY DeGreen Capital Management. Pioneers in low-cost exchange-traded fund investing. Irvine: 949-333-4550. Scottsdale: 480-609-9900. Minimum portfolio requirement $1,000,000.
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