November 14, 2010

Schwab Market Perspective: Down the Home Stretch

The midterm elections in the United States are over, the Fed announced a new round of quantitative easing (QE2—injecting cash into the economy and pushing rates lower by purchasing Treasury securities), and the final earnings reporting season of the year has come and gone. So what happens as we head toward the end of the year?

First, it’s important to remember that equity investing should be viewed in a longer-term context, with a three-to-five year time horizon. Also, this is a good time of the year to make sure your allocation aligns with your risk tolerance and make adjustments as necessary, keeping tax considerations in mind.