SS+D FINANCIAL NEWS AND INFORMATION

May 28, 2010

INVESTING IN A VOLATILE WORLD

The new “normal” in today’s market is one of accelerating change where movements are sudden and dramatic.  This has certainly been evident during the past several weeks.  Bouncing in and out of the markets in response to this volatility is not a prudent investment strategy.

In this environment you need a fiduciary advisor who will design a long-term strategy to protect you from these market swings.

At SS+D Financial we design customized portfolios of globally diversified, low-cost stock and fixed income funds in asset allocations that are suitable for clients’ long-term objectives.

To further reduce risk we have implemented an option strategy.  We selectively invest in long-term options on broad market indexes, which allow our clients to participate in the market while 99% or more of their assets remain in cash or treasuries.  This strategy allows clients to profit if the markets go up while reducing or eliminating losses during a market decline.

In the current roller-coaster market where 100-point daily up-and-down movement is the norm, this protection strategy makes more sense than ever.  During the past month, the volatility index has doubled, allowing us to increase downside protection and upside participation for new investments in this strategy.