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Access Financial executive John Gillespie urges re-evaluating market sectors

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Published: January 6, 2009

Access Financial executive urges

Re-evaluating market sectors

Q: What’s your general advice for investors as we enter 2009, coming off one of the worst years in history for the stock market?

A: The beginning of the year is a great time to assess your personal financial goals and objectives. The real question is "Does your portfolio reflect your investment temperament and risk tolerance?” If you were a buy-and-hold investor during the decline, you will want to evaluate market sectors that typically rebound during tougher economic times.

Q: I understand many of your clients had a relatively successful 2008. How did that happen?

A: This is my 26th year in the industry. Eight years ago, when the markets corrected strongly, I became a student of technical analysis. I believe there are times to be in the market and times to be out. This analysis process swept our equity sector out to money market accounts. We were able to hold our energy and natural resources positions during the first half of the year but then oil, natural gas and coal began declines. We even exited the bond market mid-year and just re-entered the government securities sector several weeks ago.

Q: Are there particular sectors or types of investments that you favor in the coming year?

A: We are currently attracted to sectors within the bond market. We have taken positions also in the precious metals sector.

Q: Do you anticipate that stocks can rebound this year?

A: I am an optimist. Therefore, with this much manure, there must be a pony in here somewhere. I never try to predict the markets direction but instead believe that daily monitoring of sectors results in prepared responsiveness. Certain sectors should begin to show signs of recovery.

Q: Do you foresee an economic recovery during 2009?

A: We have no crystal ball. However, the economy typically lags the market. As a leading indicator, the stock market often bottoms before the economy. If that is again the case, we could very well experience a retesting of the November equity lows before recovery begins. The credit markets need to begin to flow freely again. I believe in America and free capitalism. A new generation of capitalistic entrepreneurs could rise out of this crisis.

DON MECOY, BUSINESS WRITER