By Floyd Keene, The Triple EEE Foundation
In today’s world of economic uncertainty, many foundations are concerned about world events and how bad developments could affect their portfolios.
Europe, Washington politics, a large slowdown in China, Middle East uprisings, a new liquidity crisis. All these events could clearly affect the market and have very bad effects on a foundation’s portfolio.
Are you having trouble sleeping at night? Are you timid in your investment policy for fear of a world calamity? If you are, you are not alone. Many investors share your fear.
But there is one easy way to control your fear, so it does not adversely effect solid investing decisions: Do a stress test on your foundation’s portfolio. Moreover, given the incredible volatility of the market in recent months, do it now. Do it before world events surprise us all with a massive market correction, which could happen at any time.
In the words of the Boy Scouts: Be prepared.
