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.
As this year exemplifies, stock markets have the tendency to do things we would never expect.
Is there conclusive evidence that one sector is better than another when it comes to returns?
Recently, a client asked me about sectors. What are they? And how do they fit into a portfolio?
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?
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 there conclusive evidence that one sector is better than another when it comes to returns?
Recently, a client asked me about sectors. What are they? And how do they fit into a portfolio?
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?
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!”
Educated optimism is an antidote for anxious uncertainty, and it can be of great help in enabling investors to embrace the uncertainty that is with us all the time.
As we’ll see, each of these are real risks, because if they are unmanaged or unanticipated, they may cause investors to focus on the wrong things at the wrong times and lead to actions that may sabotage goals and portfolios.
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?
Probably only one thing is certain: The world is still full of surprises yet to be revealed. Is your portfolio diversified in preparation for the next one?
