MADISON, Wis. -- While the collapse of Lehman Brothers and saleof Merrill Lynch would understandably send nervous shivers downinvestors' backs, members are being advised to take a deep breath,don't panic and keep in close contact with their financialadvisers.

|

That's the message from David Marks, chief investment officerand executive vice president of CUNA Mutual Group. With nearly 40years of experience in the investment arena, Marks said the latestmarket shakeups combined with Fannie Mae and Freddie Mac's troublesare unprecedented.

|

"My parents went through the Great Depression. In terms of thefinancial markets, I would imagine that what's taking place now issimilar to what was happening then."

|

Marks emphasized that members should not panic anddiversification of assets continues to be the best way to go. Highquality fixed annuities, Treasuries and cash are good alternatives,he advised. Income averaging is still a good route to take. Despitethe gloom and doom, investors may see some opportunities.

|

"If you have a financial adviser or investment manager that youtrust, one of the things they do as a prudent rule, is look foropportunities. This is the time when members should be talking withand listening to their advisers."

|

Marks strongly believes "this too shall pass" but not untilhousing prices stabilize, foreclosures get "less onerous" andcredit becomes more available.

|

"My feeling is if you put a baseball analogy to it, we're in thesecond or third inning."

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.