Now What

The election is over, but what has changed? The same issues that existed Monday were still here this morning as I write this. The election results were a lot closer than the antiquated Electoral College results obscured. The players are the same and the issues remain even if the results of the election turned the other way.

Now we must turn to the fiscal cliff. I still believe the market is unprepared for a trip over the cliff even with the consensus of a compromise may be looming. This is contributing to the lack of volatility we are seeing that should be much higher if the markets were as concerned as much as the so called financial experts are preaching.

What to watch for now are comments out of the House speaker John Boehner and the White House for any softening of entrenched positions, particularly on taxes. This will be the main sticking point. Form my viewpoint and I hate to say this that taxes will have to be adjusted on some manner due to the lack of revenue, however I would remain reticent on spending cuts and debt reduction.

Turning to the market we would remain cautious and expect the market to remain range bound. In other words, expect the markets to move based on news particularly related to clues on now the two parties are likely to behave, as we saw Wednesday, rather than longer-term trends.

Mega cap equities, municipals and international stocks are good places to emphasize, however highly diversified portfolios will provide the best opportunity as all this plays out.

Bill

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About billriley

Chief Executive Officer, Chief Compliance Officer A co-founder and shareholder, William Riley is a 33 year industry veteran, who observed, many years ago, that over time institutional investors typically outperform individual investors while accepting less risk. In his role as Chief Executive Officer, Bill works tirelessly to make the wealth management strategies used by the world’s wealthiest families and largest institutions available to our firm’s individual clients. Bill combines fundamental and technical analysis to minimize investment portfolio risk and maximize potential returns. He uses a variety of non-correlated asset classes, including alternative investments, to minimize portfolio volatility and seek absolute returns in down or flat markets. Finally, Bill believes in a comprehensive approach to wealth management that fully coordinates and seamlessly integrates portfolio management, risk management and asset protection, trust, estate, tax and charitable planning. Prior to co-founding Riley Wealth Management ,LLC, Bill held management positions at Merrill Lynch, UBS, Raymond James, Paine Webber and J.C. Bradford. Bill founded Fort Worth branches for Raymond James and J.C. Bradford. Prior to entering the financial services industry, Bill ran his families closely held businesses. Bill’s experience operating family businesses combined with his wealth management experience makes him uniquely qualified to advise entrepreneurs and business owners on a variety of matters including complex and sensitive issues relating to business succession. Bill’s degrees and designations included a Masters Degree in Business Administration (MBA), the Chartered Financial Consultant designation (ChFC), the Chartered Life Underwriter designation (CLU) and the Wealth Management Specialist designation (WMS). A Fort Worth native, Bill is a TCU alum and active in many civic and charitable organizations. Bill and his wife, Marsha, now reside in Colleyville, and they have four grown children and four grandchildren. When he is not working on portfolios or studying financial markets, Bill can be found on the golf courses of Ridglea Country Club.
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