John answered questions from members. Regarding the announcement from the Federal Reserve that they will be unwinding Quantitative Easing, John doesn’t think there will be an immediate impact on interest rates. It may take up to 6 or 7 years. When the rates do go higher, it may mean other countries would invest their money here which could be good.
John doesn’t expect a recession or bull market any time soon but has been advising his clients to take some profits off the gains in the stock market and put it into bonds or cash.
When choosing investments, John looks at overall cost, the management team of a fund and if the manager have invested their own money in funds. He also studies people behaviors. If a lot of people start asking about a certain investments, start expecting a correction where the market drops 10%.
Give John a call with your questions about how to invest your nest egg.