Target-date funds are a perfect option for a volatile market because they keep investors diversified and at the appropriate risk level, said Tom Nelson, Portfolio Manager for the Franklin LifeSmart Retirement Target Funds. Nelson added that Franklin’s target-date offerings tend to be more conservative than those offered by other fund families. Regarding allocations, Nelson said the U.S. bull market is ‘long in the tooth’ and valuations are somewhat stretched. He prefers European equities due to an accommodating ECB. Finally, Nelson advises investors to look across the entire fixed income spectrum instead of stretching for yield.
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