Corporate bonds, alternative investments and blue chip stocks seen as best performers, focus placed on long-term vs. immediate goals
Southfield, Mich. (February 9, 2012) – Plante Moran Financial Advisors (PMFA), an independent investment advisory firm, announced the release of its 2012 annual report, "The Road Ahead". The report focuses on investment challenges within fixed income, equities and alternative investments from the past as well as outlines investment opportunities for the future. It emphasizes cash conservation in the face of uncertain markets, while acknowledging that pockets of opportunity and the potential for long-term returns exist.
“Despite the degree of volatility and uncertainty present in both the investment markets and the economy, we believe that there are opportunities from which investors can benefit, particularly those with a long-term time horizon and the patience to remain dedicated to a well-conceived investment strategy,” said Jim Baird, chief investment strategist at PMFA.
Additional highlights from the report include:
- While market volatility is driven by the short-term ebb and flow of economic data, policy decisions, and sometime just rumors, long-term results tend to be much more closely influenced by durable fundamentals and discernible trends.
- Fiscal policy can provide a boost to the economy, but a lack of clarity around future fiscal policy also has the potential to create additional uncertainty and exacerbate the problems that already exist.
- Given the low yield environment and the heightened risks to the global economy, fixed income managers will likely be focused on managing risk, while returns are likely to be very limited.
- Given indications that the economy may grow slowly in 2012, stocks are vulnerable to earnings expectations not being met, and PMFA is therefore defensively positioned heading into 2012.
“Our 2012 annual report is rooted in our commitment to providing our clients with rational, unbiased outlooks on the market," said Mark Dixon, chief investment officer at PMFA. “In an environment fraught with uncertainty, our clients can trust that our objectivity, independence, and ‘We Care’ philosophy will remain unchanged as we stand ready to assist in developing and refining the strategy that will ultimately help them meet their goals.”
For more information, download the report here. Additionally, a podcast will be available on the PMFA website starting on February 15.
About Plante Moran Financial Advisors
With more than $7 billion of assets under management, Plante Moran Financial Advisors is one of the nation's largest independent registered investment advisors according to Financial Advisor magazine's 2011 RIA rankings. Plante Moran Financial Advisors provides comprehensive institutional investment consulting services to qualified and non-qualified retirement plans, foundations, endowments and other for- and not-for-profit accounts. PMFA also serves as a trusted advisor to high net worth individuals, family business owners, helping them build, manage and preserve their wealth. Its integrated affiliate services include investment consulting, financial planning, trust, insurance consulting, estate planning, business succession and tax planning. Plante Moran Financial Advisors is an affiliated entity to Plante Moran, the nation's 12th largest certified public accounting and business advisory firm, providing clients with financial, human capital, operations, strategy, technology, and family wealth management services.