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.
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.
Have you heard the words, “value” and “growth,” when it comes to investing? Let’s face it: These words are often misunderstood and poorly utilized.
