Baseball and Investing: Managing Behavior for Success
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.
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.
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.
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.
Those of you who keep up with the financial news are likely familiar with the three most quoted indices, the S&P 500, Dow Jones Industrial Average, and the NASDAQ. Sometimes, the returns for all of them are similar, but sometimes they are not.
Market declines are never enjoyable in the moment. But these kinds of intra-year pull backs are normal when looking at market history.
Market declines are never enjoyable in the moment. But these kinds of intra-year pull backs are normal when looking at market history.
International Stocks – Are they necessary?
This year’s stock market narrative is a tale of two markets. On one side, a handful of prominent technology companies is flourishing while on the other side, everything else is struggling to keep up. Here we will assess the data.
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.
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.
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.
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.
The past fifteen years have been phenomenal for U.S. stocks. They've outperformed international stocks by close to 200%. Unfortunately, no one can predict when international stocks will outperform U.S. stocks, or vice-versa.
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 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.