In both meals and investments, balance is key. A diversified portfolio can weather market fluctuations just as a well planned Thanksgiving dinner can satisfy almost everyone’s appetite.
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.
Merriam Webster defines a benchmark as “something that serves as a standard by which others may be measured or judged”. For investors, the question to ask is what should be my standard, my benchmark, in determining the success or failure of my overall investment portfolio?
Is stock market growth a thing of the past? Headlines making predictions about this have come and gone, some turning out to be spectacularly wrong. Let’s take a look.
Kent Kramer examines the effects of an election season on investors. Drawing on historical data and behavioral economics, he emphasizes the importance of recognizing cognitive biases and staying optimistic.
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.
Let's review two industry studies, the NACUBO Study of Endowments and the Association Investment Policies, Practices and Performance. Each organization is different and has its own set of unique goals and challenges. Although this is the case, learning how other nonprofits invest can help ignite a meaningful conversation within your own organization.
We believe that investors increase their chances of success by avoiding predictable mistakes, those practices that sound like they should work but have been shown time and again to have very low probabilities of success.
Let's review two industry studies, the NACUBO Study of Endowments and the Association Investment Policies, Practices and Performance. Each organization is different and has its own set of unique goals and challenges. Although this is the case, learning how other nonprofits invest can help ignite a meaningful conversation within your own organization.
We believe that investors increase their chances of success by avoiding predictable mistakes, those practices that sound like they should work but have been shown time and again to have very low probabilities of success.
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.
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.
Has Artificial Intelligence been causing you anxiety, or made you wonder about the trustworthiness of investment markets? Be reminded that “educated optimism is an antidote for anxious uncertainty”.
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.
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.
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.
If you are a client of Foster Group and have met with your advisor recently, you may have discussed what’s important to you, what we are planning for as it relates to your goals, and what you hope to achieve.
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.
