Stocks are thriving on Wall Street. George Reis is the President of GVR Investment Management in Two Rivers, and he tells SeehaferNews.com that a major reason is the Federal Reserve reducing their interest rates to at or near zero.
”I think they have gone on record that they are going to continue this process, especially the interest rates, for another couple of years,” Reis explained. “That is given interest, pardon the pun, for clients who invest in the stocks rather than putting it into CDs or money markets, or that type of investment.” But Reis explains why this might not be sustainable in the long-term.
He said compared to December of 2019, “Earnings are down, sales are down, people are working from home, medical issues…I am very concerned that the market is overheated.” The local financial expert wants to make clear that just a handful of stocks control the volatility of the S&P 500 and diversification is key to long term success. “For example, Amazon, Apple, Costco, maybe some other related types, maybe a couple banks, Mastercard, stocks like that.” Reis suggested. “So, if one sector has a dip, you’re protected by, hopefully, the other sectors.” Reis also emphasizes working with a fiduciary-investors which are legally bound to look out for their client’s best interests and conversing at least three times per quarter.
