The New Economic Climate Requires Changes in Investment Strategies

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The market continues volatility requiring financial planners to create strategies that are less risk while maintaining portfolio growth. To balance growth and risk, communication between investor and planner is key.

Since the economy shake-up between 2008 and 2009, financial planners now have the double duty of advising as well as placating their nervous clients. Many financial planners have adjusted their investment model during this economically shaky time. "Taking a 'get rich slowly' approach resonates for more of our clients especially now," reports David Morganstern, CFP and co-president of CMC Advisers, an award winning financial planning firm in Portland, Oregon. "Risk takes on a new meaning now that investors have been exposed to the downside of investing."

As this unpredictable recovery course proceeds, uncertainty keeps individual investors skittish. While they want to see decent profits, people are more likely to forgo a prospective high return for a more moderated portfolio. "We formerly had a model of 60% equity and 40% fixed income. Since 2008, our strategy has changed to a 50%/50% portfolio model, which means that we get most of the upside but contain the downside risk better," explains Morganstern.

The litmus test for ones risk tolerance varies from individual to individual investor. However, age can be the defining factor. For investors over 55, safety and protection should become an integral part of their plans. After experiencing this tsunami sized financial correction, both investor and financial planner must line up their definitions of risk and their expectations of return.
David Morganstern has been successfully serving clients since 1988, when he began a fee-only financial planning practice. Prior to that time he conducted pre-retirement planning educational seminars in a corporate setting, assisting employees with pension and retirement-related issues. His practice specializes in portfolio management, stock options and retirement planning to executives, high-tech professionals and business owners.

David Morganstern is very active in his professional association, the Financial Planning Association (FPA). He served as Program Chair (1995-96), two terms as President (1996-98) and in 1998 under his leadership the Oregon chapter received the national Chapter Excellence Award. He was elected to a 3-year position on the National FPA Chapter Advisory Council (1998-2001). He has formerly served on the Business Group on Health in the Portland Chamber of Commerce. He is a current member of the Portland Estate Planning Council and the Portland Business Alliance.

Mr. Morganstern received his bachelor's degree with honors in psychology from the University of Connecticut. He later earned a master's degree in counseling from the University of Oregon. He has advanced certificates in Employee Relations Law and Personnel Management. He is frequently interviewed by the media regarding financial planning and investing, including the Los Angeles Times, Financial Planning, Oregon Business, Bloomberg radio and The Oregonian newspaper.

Contact Inspired Media Communications to interview David Morganstern at 503-678-1356


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|Diane Dennis
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