July 2010 issue
Business news: Sometimes, a crisis comes in a flash. “Most people won’t be able to react quickly enough in a crisis,” says Keith Springer, president of Springer Financial Advisors in Sacramento, Calif. “The flash crash was a precursor. The big institutions stepped away in what looked like a concerted effort to avoid big losses. I think that’ll be the future pattern.”
Springer says he’s scored big gains since the ’08-’09 crash with a conservative style heavy on dividend and income stocks. “I want to get paid for taking risk,” he says, adding he did well with master limited partnership and preferred stocks, as well as corporate bonds.
And that’s his game plan going forward because he believes the economy will get whacked as tepid consumer spending fails to pick up the slack when the federal stimulus goes away. “I’m getting more conservative by going shorter-term with my corporates because I think the next GDP comes in lighter than expected and that will precipitate the next crash,” he says.
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