Chart of the Month – Feb 2023
Recently, a client asked me about sectors. What are they? And how do they fit into a portfolio?
Recently, a client asked me about sectors. What are they? And how do they fit into a portfolio?
Is there conclusive evidence that one sector is better than another when it comes to returns?
Increasing interest rates have many effects, not only on the economy, but also on stocks. Given the recent rally, we wanted to highlight that rising rates do not always mean that stocks will go down. While the stock market is not making new all-time highs just yet, the market has been resilient to a regime thought to be a drag on the markets.
Are you feeling the pain at the pump? What is driving oil prices higher?
As an investor, perspective is important. At the end of the day, a diversified, low cost, properly allocated portfolio based on your financial plan is what matters.
This year, we have seen a runup in several large names, mostly in the technology space. They have been dubbed the “Magnificent Seven” by financial news publications. Why might this matter to an investor?
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.
On March 23, 2020, the S&P 500 tumbled another 3%, culminating a near 34% drop over that same month. The Dow Jones hovered around 19,000. Gains from the past few years were gone.
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.
Market volatility tends to unnerve even the calmest of investors. How do we know what to hold and how much to hold at any particular time? That’s a crucial question, but the answer does not need to be complicated.
Plenty of arguments exist as to why we will be and/or already are in a recession. However, there is good news out there that isn’t readily reported.
Stay diversified, and stay the course. That’s good advice for both runners and investors.
Money is emotional and our “news” cycle is a catalyst. Investors react to what they hear and how they feel, oftentimes to their own detriment.
Making good decisions and ultimately avoiding costly mistakes can be life-changing. Note that it does not start and end with picking the best player or hot stock but rather goals and a plan.
“Past performance is not indicative of future results.” Most people think of investing when they hear or read the sentence above, the ultimate statement of caution. What do you think of this statement when it comes to baseball?
The benefit of a diversified investment portfolio is that, while again we do not know who the actual winners and losers will be, the risk of excluding the best is greatly reduced.