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Investing Strategies for an Evolving Market I Submitted by Paul D. Guerra NVESTORS FACE A constant barrage of financial news and advice. From websites and newspapers to 24-hour cable news programs, recent market developments are sliced, diced and analyzed in granular detail. Making investment decisions based on day-to-day changes in the markets, however, may actually move you further away from your financial goals. In fact, studies have shown that investors who try to time their jumps in and out of the stock market are often rewarded with subpar performance. A buy-and-hold philosophy, however, may be difficult to follow — particularly during volatile periods in the market. Keep in mind, though, that financial markets often make considerable gains in the months and years following a downturn, and investors who stay on the sidelines and out of the stock market, for example, won't fully benefit from those gains. Adopting a long-term investment perspective doesn't mean taking a hands- off approach. In fact, it's important to make regular adjustments to your portfolio to help keep your investment strategy on track. This can also help you take advantage of bargains in the financial markets. Per iodical ly rebalancing your investments requires you to shift your portfolio's asset allocation — your mix of stocks, bonds and cash invest- ments — back in line with your target allocation. For example, if stocks have performed poorly and bonds have performed well in recent months, you may find that stocks make up too small a portion of your portfolio while your bond stake has grown too large. Continued on Page 38 22 | Cleveland-Akron-Canton MD NEWS ■ MDNEWS.COM ■ JULY-AUGUST 2012 Brouse McDowell adds value to your health care business. The health care industry constantly faces new and complex challenges. Brouse McDowell's health care practice group proactively counsels and advises a wide array of health care clients, including multi- and single- physician groups, hospitals, health systems, ancillary service providers, long term care facilities, medical device companies and durable medical equipment and supply companies. For more information, please contact: Daniel K. Glessner, Practice Chair, 330.535.5711 Ext. 316 or dglessner@brouse.com or Christopher M. Huryn, 330.535.5711 Ext. 389 or churyn@brouse.com. AKRON | CLEVELAND | AVON AKRON OFFICE: 388 South Main St. Suite 500 Akron, Ohio 44311 330.535.5711 brouse.com It's our business to understand your business... ©2012 Brouse