Chart of the Month – Feb 2022
Market declines are never enjoyable in the moment. But these kinds of intra-year pull backs are normal when looking at market history.
Still Searching for the One?
You do not need to pick the next big winner in order to have a successful investment experience. As a matter of fact, behaving as if this were possible is an almost certain way to have a terrible investment experience. What are the hallmarks of a more successful approach?
Inflation Aware Investing
You know the old saying, “What goes up must come down.” Currently everything seems to be going up at the same time.
10 Obstacles to Investing – and How to Overcome Them
In the following article David draws on his years of experience talking with investors and academics alike to address some common hesitations all investors face from time to time.
My Top 9 + 1 from Morgan Housel’s The Psychology of Money
Morgan Housel, author of The Psychology of Money, spent some time with us last month. Here are my takeaways.
Equilibrium Markets in the Time of COVID
Over the years, Foster Group has utilized a number of mutual funds and exchange traded funds managed by Dimensional Fund Advisors (DFA). DFA was founded in 1981 on the idea of making academic investment research and empirically based portfolio management accessible to investors. In this article, Professor Kenneth French describes how markets responded to the events surrounding the COVID-19 pandemic.
Are You Afraid of (Market) Heights?
Investors have been experiencing some fear of heights recently. Many stocks and stock markets are at or near all-time highs. So, here’s the question investors need to ask themselves today, ”Do you think that stock markets 26 years from now will be higher or lower than they are currently, even if today is an all-time high?”
What a Difference a Year Makes
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.
Do Small Company Stocks Like New Presidents?
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?
My Favorite Blog Posts and Podcast Episodes from 2020
Many of my favorite content pieces from 2020 reflect on the themes of uncertainty, risk, change, and remaining optimistic in the face of unsettling circumstances.
While You Were Sleeping
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.
Georgia, Political Majorities, & Markets
Unprecedented! That word had been used ad nauseam in 2020.
The Biggest Risk to Investors Remaining in 2020?
Aside from COVID-19, what represents the biggest risk for investors in the second half of what is turning out to be a historic 2020?
Elections and Your Money Q&A
Since we were unable to answer all of the questions asked during the live webinar, we'd like to share some of the questions and answers in written form.
2020: A Predictor’s Kryptonite
At the end of 2019, Foster Group’s Investment Strategy Group wanted to create an object lesson to illustrate how hard it is to predict what will happen in financial markets and the world in general.
Diversification: Preparing for the Next Surprise
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?
What I Think About When Working From Home
In the blink of an eye, it seems, our lives have taken a major turn, because of a sneaky, harmful, invisible germ. The concept of uncertainty is real and palpable.
Grow Through What You Go Through
While this time has been incredibly difficult for so many, I hope that people look back on this time and remember the lessons they learned rather than the struggles they suffered.
Four Ways to Connect with Foster Group
How can you stay connected financially during this time?
Webinar Replay: Prediction, Expectation, Speculation, & Preparation
Foster Group's Chief Investment Officer, Kent Kramer, explains how to position both your investments and your thinking to better avoid predictable disappointments.
How Elections Affect the Market
A bit of history helps bring some perspective to trying to read too much into the influence of elections on stock markets.