Georgia, Political Majorities, & Markets
Unprecedented! That word had been used ad nauseam in 2020.
Unprecedented! That word had been used ad nauseam in 2020.
Many of my favorite content pieces from 2020 reflect on the themes of uncertainty, risk, change, and remaining optimistic in the face of unsettling circumstances.
In the three months since Joe Biden was elected President of the United States, small company stocks have risen more than 30%. Four years ago, Donald Trump was elected President of the United States and small company stocks went up almost 20% in the twenty-six days surrounding the election, from November 3rd to December 9th. Do small company stock investors just like new Presidents?
Investors have been experiencing some fear of heights recently. Many stocks and stock markets are at or near all-time highs. So, here’s the question investors need to ask themselves today, ”Do you think that stock markets 26 years from now will be higher or lower than they are currently, even if today is an all-time high?”
Have you ever said to yourself “If I would have just bought that stock, I would be set!” Or “How did I not see this coming? I was watching this stock years ago!” Or maybe “I should have never sold that stock!”
Is the title to this blog supposed to be clickbait? Of course it is. That is the point of this blog. Bad news sells.
In our family, we have a tradition in which, the night before our kids’ birthdays, we pause for a moment to recap the last year by reminiscing about their successes and failures. It dawned on me that these are the same feelings investors experience and learn from on their financial journeys.
Pictures and video coming from Ukraine are difficult to watch. As humans, we may be angered and ask, “How can I help?” In investing, typically the best thing to do in the moments when we are most tempted to do “something,” is simply to sit still.
“But it’s different this time!” I wish I had a dollar for every time I’ve heard this over the years. While it is true that the set of circumstances driving the market are always unique, the end result is almost always the same.
Being informed without getting drawn into every breaking news story that touches the economy, markets, or business. Doing well with money isn't necessarily about what you know but rather, how you behave.
This year’s stock market narrative is a tale of two markets. On one side, a handful of prominent technology companies is flourishing while on the other side, everything else is struggling to keep up. Here we will assess the data.
In investing, a key consideration is the time horizon. There is a general perception that investing is a risky proposition, but this risk can be mitigated by holding investments for longer periods.
The past fifteen years have been phenomenal for U.S. stocks. They've outperformed international stocks by close to 200%. Unfortunately, no one can predict when international stocks will outperform U.S. stocks, or vice-versa.
Many people are apprehensive about the markets, whether we’re in a bear market or a bull market. The fear of a market correction is always present.
Trying to time the market and choosing to sell in reaction to headlines tends to be a predictable mistake. There always seems to be a reason to sell.
Market declines are never enjoyable in the moment. But these kinds of intra-year pull backs are normal when looking at market history.