Exton, Pa.-based Warren Financial Services says it is pulling client assets out of high beta exchange-traded funds (ETFs) and mutual funds that company executives say won't perform in the current highly correlated, volatile market, the company announced today.
"Crises that plagued the markets throughout September have historically reached a crescendo in October, and this year is no exception," says Randy Warren, chief investment officer at Warren Financial Service. "We're shoring up protection for our portfolios and preparing for the worst."
Warren says the European debt crisis continues to "cast a dark shadow" over the investor outlook.
"Correlation is nearing an all-time high, and last week brought the greatest decline in major U.S. equities since the outset of the financial crisis in October 2008," Warren added.
Founded in 1965, Warren Financial Service provides investment advice for individuals, small/medium-sized businesses, foundations and trusts.
--Jim McConville