Chart of the Month – July 2024
International Stocks – Are they necessary?
International Stocks – Are they necessary?
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.
Following Russia's invasion of Ukraine, gas prices spiked to a nationwide peak of $5.02/gallon on June 13, 2022. Since then, the price of gas has been coming down, but the discussions about it have not slowed at all.
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.
While cash may offer stability and security in the short term, the DFA Returns Web chart from 1926 through February 2024 suggests that the growth potential in stocks offers a higher rewarding investment opportunity in the long run.
No one can time the market and determine when those best months will occur. The best months are surprisingly random. More important than timing the market is time in the market.
International Stocks – Are they necessary?
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.
Following Russia's invasion of Ukraine, gas prices spiked to a nationwide peak of $5.02/gallon on June 13, 2022. Since then, the price of gas has been coming down, but the discussions about it have not slowed at all.
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.
While cash may offer stability and security in the short term, the DFA Returns Web chart from 1926 through February 2024 suggests that the growth potential in stocks offers a higher rewarding investment opportunity in the long run.
No one can time the market and determine when those best months will occur. The best months are surprisingly random. More important than timing the market is time in the market.
Do you wonder why we invest in equities? Equities are an attractive investment for their growth characteristics, but they have also served as a hedge against inflation.
When we examine the historical relationship between equities and cash, it becomes evident that while cash may offer safety and short-term stability, equities tend to outperform over time. For long-term investors, remember that your plan should influence the portfolio and that reacting to market conditions is not a wise reason to change your plan.
It's natural to sit down at the end of the year and reflect on what happened. Here is a short recap of what happened in the markets and the world in 2022.