[video] Quick Take: Protecting Your Long-Term Portfolio
NEW YORK ( TheStreet) -- Many investors are still reeling from the 2008 financial crisis, Mark Hamilton, CIO of asset allocation at Oppenheimer Funds, told TheStreet's Brittany Umar. That could be one factor that prevents investors from reaching their long-term goals.
Hamilton, who admitted it can be tough going through a "once-in-a-lifetime" financial catastrophe, said that it really changes the way people think about portfolio risk. He added that investors tend to focus on the near-term risks and seem to be good at averting them. However, it's the long-term risks that many fail to see.
Since the collapse five years ago and until very recently, there has been a tremendous inflow to bond funds and cash as investors have become much more conservative, Hamilton said. While this strategy does mitigate stock market risk, it may also make it difficult for many investors to reach their long-term goals.
Hamilton concluded that with cash positions making zero returns and bond returns barely beating inflation, this portfolio structure will not likely be sufficient to build the kinds of assets that are necessary for long-term successes, such as retirement.-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts