With all the global uncertainty in the world, the average investor has lost confidence.  The Market is up and down like a yoyo, and these are turbulent times.  The world markets are changing like we have never seen before.  Entire countries are failing and reaching points of no return.  It seems like the monetary system as a whole has a heap of problems beyond the comprehension of the normal folk.

I read an interesting article.  I am including part of it in my post today.  It really got my attention.  Here is the link to the full article:  here )  I bolded some important information…

White paper authors Lisa Shalett, chief investment officer and head of Investment Management and Guidance for Merrill Lynch Wealth Management, and Ian Bremmer, president of Eurasia Group, address worldwide investor concerns and identify opportunities presented by the seismic changes in the balance of power driving today’s markets.

The webcast features Shalett and Bremmer and is moderated by Ron Insana, senior analyst and commentator for CNBC.

“The Great Global Shift: New World, New Rules” explores new investment approaches in light of the changing global economy. Signaling instability, developed countries are turning inward to fix infrastructure and financial problems; at the same time, emerging-market nations are showing promise for continued growth, but many are not yet offering solutions for global economic issues.

As a result, “The Great Global Shift: New World, New Rules” advocates that investors give at least as much thought to risk management as efforts to maximize returns. Managing risk in this environment requires investors to be flexible, dynamic, and global-minded and adapt portfolios to meet emerging challenges and opportunities. To keep up with this profoundly changed world and realize personal financial goals, investors need to consider looking outward and diversify not just through traditional domestic stocks, but through geographies and asset classes.

“People have to face the market head on and understand how to seize opportunity in this new world as it evolves,” said Shalett. “That means considering the economic, social, and political dynamics in play. The greatest risk to failing to meet financial goals stems from investors using a ’stay the course’ approach to their portfolios.”

In August, 54 percent of Americans rated current economic conditions as poor, up from 42 percent in July, according to Gallup’s Economic Confidence Index. The decline in confidence due to the current volatility in the markets and the growing global financial crisis has investors clinging to their familiar tactic: buying and then “holding on for dear life.”

“Eighty percent of Americans believe the economy is getting worse, which is understandable in this turbulent global environment,” said Bremmer. “But despite much of the geopolitical uncertainty and the economic rebalancing happening in Europe, the United States, China, and elsewhere, there are ways to find success and growth even as the unpredictable occurs.”

I felt this article was really powerful because so many people hand off their portfolio to someone else to manage.  They are not aware of what they even hold in them, and the portfolio manager is not personally paying attention to what they selected for investments at the time they invested.  Honestly, I don’t beleive that the average person even takes the time to open up and read their RRSP portfolio statements, and if they do, they probably have very little understanding of the information on it.  Most of their investments are stock market related and not personally managed.  What might have been good growth a few years ago is not doing so hot now…  The typical advisor will tell you to hold on for the long run, and clearly here in this article, this is obviously not the right move for most of us.

It might be time to start thinking outside of the box if you haven’t already.  Think about Private investments in companies not listed on the exchange that have a strong asset base and an established business plan.  Consider private equities as part of your portfolio and start to take back control of your money!

Take the time to familiarize yourself with White Capital Corp and the product line up this Exempt Market dealer has to offer and contact someone in your area that is an authorized representative with them for some insight into diversifying your portfolio.  You will be glad you did!

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