What do investing and being a loyal sports fan have in common? More than you might think. Read on to discover how the ups and downs of fandom can mirror the journey of long-term investing—and why both are worth the ride.
As this year exemplifies, stock markets have the tendency to do things we would never expect.
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.
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.
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.
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.
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.
