Value vs Growth – What does that Mean?
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.
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.
Market declines are never enjoyable in the moment. But these kinds of intra-year pull backs are normal when looking at market history.
“But it’s different this time!” I wish I had a dollar for every time I’ve heard this over the years. While it is true that the set of circumstances driving the market are always unique, the end result is almost always the same.
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.
Imagine that you fell asleep at the beginning of the year and woke up at the end of 2020. When you wake up, there are some things that would immediately feel different.
For weeks, the major indices had been declining but in mid-March, we saw a very abrupt reversal. I’m often reminded of the familiar saying “Investors must be present to win.” In other words, the price (or cost) of admission to the investment experience is market volatility.
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.
Imagine that you fell asleep at the beginning of the year and woke up at the end of 2020. When you wake up, there are some things that would immediately feel different.
For weeks, the major indices had been declining but in mid-March, we saw a very abrupt reversal. I’m often reminded of the familiar saying “Investors must be present to win.” In other words, the price (or cost) of admission to the investment experience is market volatility.
As this year exemplifies, stock markets have the tendency to do things we would never expect.
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?