Potential for Slower Growth Supports Moderately Balanced Portfolio
CNBC recently sought stockA financial instrument giving the holder a proportion of the ownership and earnings of a company. market and economic insight from Adviser Investments’ Chief Investment Officer Jim Lowell. Amid the recent FAANG stock selloff, Jim shared his views on the role of tech stocksA financial instrument giving the holder a proportion of the ownership and earnings of a company. in growth investors’ portfolios over the long term. He also discussed the prospect for potentially slower growth in 2019 and anticipatory reallocation towards a more moderately balanced portfolio comprised of equitiesThe amount of money that would be returned to shareholders if a company’s assets were sold off and all its debt repaid., bondsA financial instrument representing an IOU from the borrower to the lender. Bond issuers promise to pay bond holders a given amount of interest for a pre-determined amount of time until the loan is repaid in full (otherwise known as the maturity date). Bonds can have a fixed or floating interest rate. Fixed-rate bonds pay out a pre-determined amount of interest each year, while floating-rate bonds can pay higher or lower interest each year depending on prevailing market interest rates. and cash.