Madison, NJ – May 18, 2011 – Brinton Eaton Principal and Chief Investment Officer Jerry A. Miccolis has authored “Protecting Portfolios Against Contagion,” an article appearing in the May/June 2011 issue of Contingencies, a publication of the American Academy of Actuaries.
The article addresses the phenomenon of contagion—when all asset classes decline in unison, such as occurred during the market crash of late 2008. “To protect against contagion in the future, we must usher in a new era of wealth management—one in which portfolios are proactively (and dynamically) risk-managed,” writes Miccolis. In the article, Miccolis cites the modernization of portfolio theory, more dynamic asset allocation, and portfolio protection as three tools that can be used to stabilize and protect client portfolios regardless of extreme market conditions.
In addressing the issue of portfolio protection, Miccolis compares it to a reserve parachute. “It provides peace of mind, but also serves as an all-important layer of additional protection in the rare event that the first parachute —asset allocation and rebalancing — completely fails.”
Miccolis concludes with a call to action. “The wealth industry might be excused for being unprepared this last time. But it won’t get a pass next time. The industry has a duty to its clients to be better prepared for the next outbreak of contagion.”
Mr. Miccolis, who specializes in financial planning, risk management, investment research, and portfolio management, holds the Chartered Financial Analyst® designation, is a Certified Financial Planner™ practitioner, and is a fellow of the Casualty Actuarial Society (FCAS). He also is a member of the American Academy of Actuaries (MAAA), the Financial Planning Association (FPA), and the New York Society of Security Analysts (NYSSA). He is co-author of Asset Allocation For Dummies® (Wiley 2009).
About Brinton Eaton:
Based in Madison, NJ, Brinton Eaton is an advisory firm with a long history of serving individuals and their families across multiple generations. The firm helps its clients protect, grow, administer, and ultimately transfer their legacy of wealth through a full range of integrated services, including lifetime cash flow projections, financial/tax/estate/retirement planning, investment management, charitable giving, and business succession planning. Brinton Eaton’s clients tend to be corporate executives, professionals, entrepreneurs, retirees, and multi-generational families. For more information, visit www.brintoneaton.com.
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