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?
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?
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!”
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.
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.
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.
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.
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.
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.
Is the title to this blog supposed to be clickbait? Of course it is. That is the point of this blog. Bad news sells.
For the person who is currently contributing to a portfolio and does not need to take distributions anytime soon, this is a gift. That’s right, a bear market is a gift to those investors. If you are contributing to an investment account right now, you are already in the Bear Market Buyer’s Club.
Does it help or harm the average long-term investor to peek at their own accounts or pay attention to the market every day?
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?”
Being informed without getting drawn into every breaking news story that touches the economy, markets, or business. Doing well with money isn't necessarily about what you know but rather, how you behave.
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.
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.
“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.