Eileen Sharkey is teaching “Financial Literacy: 21st Century Survival Skills” on Thursdays at 1 p.m., starting March 31.
She was featured in the Wall Street Journal. Read full text below, or click on the link here, Sharkey in Wall Street Journal
Europe Might Be No Investing Vacation
European Markets Won’t Benefit From Stimulus Right Away, She Says
With a rebound in Europe’s economies looking unlikely this year, Denver financial adviser Eileen Sharkey has this to say about international investments: Proceed with caution.
The European Central Bank in late January announced plans to pump more than $1 trillion in new money into eurozone economies to help spur growth, similar to what the U.S. Federal Reserve did in the U.S. amid the financial crisis. But it could take years for the flood of money to help some economies and their stock markets, Ms. Sharkey says.
Eileen Sharkey. Photo: Edward DeCroce
Joel Javer. Photo: Edward DeCroce
“Things that are in trouble are generally cheap and attractive, but it may take a while for the dust to settle,” says Ms. Sharkey, co-founder of financial advisers Sharkey, Howes & Javer Inc.
The firm’s investment team is closely monitoring investments in the region, and if there are signs of declines, it would look to cut its international stock allocation by as much as half. Last year, the advisers bought an international fund that hedges against foreign-currency risk and thus loses less value as the U.S. dollar strengthens. “We believe the dollar will continue to get stronger” this year, says Joel Javer, co-founder of the firm.
In this column we feature model portfolios from prominent investment advisers. Ms. Sharkey co-founded the firm in 1990 with Lawrence Howes, as well as Mr. Javer. The firm currently manages around $750 million.
For clients who can handle moderate risk, the firm allocates 12% to developed foreign stocks, which include investments outside Europe such as Japan. If technical trends indicate that their international fund is poised to lose value, they would look to trim it, says Mr. Javer.
Here, the advisers share a model portfolio suitable for clients who can handle moderate risk.
The portfolio’s weighted average expense ratio is 0.56%, and the portfolio was up 12% annually for the five years endedDec. 31, according to Mr. Javer. That was before the firm’s investment-management fee, which is 1% or less of assets under management.
Ms. Anand is markets and finance editor for The Wall Street Journal in India. Email her at email@example.com.