2022 was a historically painful year as an investor with stock markets experiencing a bear market, and bond markets having one of their worst years ever. However, as we enter 2023, I’d like to consider the positives.
If you’re a young professional, negative market returns can carry less weight than you might think. Let’s use 2022 as an example.
Is the title to this blog supposed to be clickbait? Of course it is. That is the point of this blog. Bad news sells.
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.
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.
Does war in Israel mean a big market meltdown? It’s hard to escape the war news. One way to think about the future is by looking at the past for similar circumstances.
Investing is a deliberate act, guided by the overarching principles of enhancing expected returns or mitigating portfolio risk. Let’s look at Bitcoin to see how cryptocurrency might look like an investment opportunity.
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.
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.
International Stocks – Are they necessary?
Do you wonder why we invest in equities? Equities are an attractive investment for their growth characteristics, but they have also served as a hedge against inflation.
Kent Kramer examines the effects of an election season on investors. Drawing on historical data and behavioral economics, he emphasizes the importance of recognizing cognitive biases and staying optimistic.
Merriam Webster defines a benchmark as “something that serves as a standard by which others may be measured or judged”. For investors, the question to ask is what should be my standard, my benchmark, in determining the success or failure of my overall investment portfolio?
When we examine the historical relationship between equities and cash, it becomes evident that while cash may offer safety and short-term stability, equities tend to outperform over time. For long-term investors, remember that your plan should influence the portfolio and that reacting to market conditions is not a wise reason to change your plan.
