Taking the Long View in a Short-Term World
Category: Investing » Foster Group Investment Principles
One of the primary roles we play as financial advisors is to help our clients remember to take the long-view.
How the “Little Guy” Really Wins in the Market
Don’t believe the lie that you don’t belong or that the keys belong to someone who won’t give them to you.
How to Avoid Tyrannically Urgent Yet Unimportant Investment Ideas
Category: Investing » Foster Group Investment Principles
As we’ll see, each of these are real risks, because if they are unmanaged or unanticipated, they may cause investors to focus on the wrong things at the wrong times and lead to actions that may sabotage goals and portfolios.
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’s Your Best Buy: Firm Foundation or Castle In the Air?
If an investor could discover the true worth of a company, a piece of real estate or even an idea, where “true worth” equated to the future value or price that others would pay, success would be almost certain to follow. Those opportunities that were priced significantly lower than the future value would be automatic buys. The one’s with higher prices today than the future price would be ones to avoid. If only it were that simple!
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.
DraftKings Knows More About You Than You Know About You
For 12 seconds, consider what a company knows about you and their own profitability if they are willing to offer you a $500 risk-free bet to get started. That’s what DraftKings just promised me in a commercial. Sounds awesome, doesn’t it? OK, the 12 seconds are up. What did you come up with?
An Investment Portfolio Is Like a Good Smoothie
Category: Investing » Foster Group Investment Principles
Recently, I rediscovered the benefits of homemade smoothies for breakfast. They are nutritious, natural, easy to make, efficient, and delicious! This morning, I was thinking about how a good investment portfolio is like a good smoothie!
Investment Policy Statement – Why Is It Important?
Category: Investing » Foster Group Investment Principles
It is important for all investors, whether an individual, family, retirement plan, or nonprofit, to plan their investment approach around their goals and objectives. Investment Policy Statements (IPS) often document these items. Here are four reasons why it is important to have a clearly articulated IPS.
Why Index Funds Don’t Work for Some People
Category: Investing » Foster Group Investment Principles
Index funds are popular investment tools for good reason. They are low cost, effective ways to capture market return. Choosing to use index funds is only half the battle though; you must use them correctly to truly benefit.
Market Madness
Category: Investing » Foster Group Investment Principles
There is just something about the NCAA Men’s and Women’s College Basketball Tournament. There is tremendous excitement in many families and workplaces as tournament brackets are filled in with predictions about the outcomes of 67 games over a three-week period.
What to Do & What Not to Do in Response to Russia-Ukraine War
Category: Investing » Foster Group Investment Principles
Pictures and video coming from Ukraine are difficult to watch. As humans, we may be angered and ask, “How can I help?” In investing, typically the best thing to do in the moments when we are most tempted to do “something,” is simply to sit still.
Investors Must Be Present to Win
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.
What Does It Mean to Be an Investor? – Part One
Category: Investing » Foster Group Investment Principles
For a minute, I want to think broadly about the question, “What does it mean to be an investor?”
Are You Checking Your Accounts Every Day? Stop it.
Does it help or harm the average long-term investor to peek at their own accounts or pay attention to the market every day?
Speeding Tickets & Investing
Category: Investing » Foster Group Investment Principles
Recently, I received a gift from the Iowa State Patrol in the form of a speeding ticket. In reflecting on this experience, it occurred to me that I took an unnecessary risk to attain something I didn’t need and ended up sacrificing money I didn’t have to lose.
When Market Volatility Creates Opportunity
Category: Investing » Foster Group Investment Principles
The first half of 2022 has proven to be challenging for investors. Being an investor during volatile markets isn’t easy, but there are a few strategies to consider in order to make the best of a difficult situation.
A Few of My Favorite Things
Almost everyone has a few of their favorite things. One of my top questions to ask friends and clients is, “What are some of your most treasured memories and keepsakes?”
What Does It Mean to Be an Investor? – Part Two
As you peek into the future – hopefully one with greater discretionary time and money – do you envision yourself increasing or decreasing your investment in the well-being of the people close to you and the world in general? Do you see yourself sticking close to the mess of the world or investing in ways that escape it?
Nervous About the Market? Maybe You Need a Lifeboat.
Category: Investing » Foster Group Investment Principles
Market volatility tends to unnerve even the calmest of investors. How do we know what to hold and how much to hold at any particular time? That’s a crucial question, but the answer does not need to be complicated.
Are You in the Bear Market Buyer’s Club?
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.