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?
Georgia, Political Majorities, & Markets
Unprecedented! That word had been used ad nauseam in 2020.
My Favorite Blog Posts and Podcast Episodes from 2020
Category: Investing » Foster Group Investment Principles
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.
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?
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!
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.
Purpose Before Portfolio
Category: Investing » Foster Group Investment Principles
Are you making investment decisions in light of the game you really want to win?
Barbell Portfolios Can Be Hard To Hold On To
Barbells work great at the gym because they put weight on a bar in such a way that it’s balanced, leaving room in the middle for someone to use it to workout. We often see portfolios that are designed like a barbell at the gym: lots of risk in one account and lots of cash or very short-term securities in another. In aggregate, it might produce some balance, but the reality is that it can create some real challenges.
Tailoring Your Financial Plan to Match Your Goals
Category: Investing » Foster Group Investment Principles
If you are a client of Foster Group and have met with your advisor recently, you may have discussed what’s important to you, what we are planning for as it relates to your goals, and what you hope to achieve.
Positives About the Market
Category: Investing » Foster Group Investment Principles
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.
Three Categories of Risk for Retirement Income
Category: Investing » Foster Group Investment Principles
Risks can often feel much different to retirees. The overarching risk for retirees is that something takes place that results in a permanently lower standard of living. Retirement researcher, Wade Pfau, has identified three major categories of risk for one’s income in retirement.
Timing Isn’t Everything
Category: Investing » Foster Group Investment Principles
Attempting to buy individual stocks or make tactical asset allocation changes at exactly the “right” time presents investors with substantial challenges.
An Executive’s Financial Guide
Category: Investing » Foster Group Investment Principles
Our eBook, An Executive's Financial Guide, can help with your road map to retirement, as we show you new ways to make use of your wealth for purposes important to you.
Investments Are Long-Term; Brackets Are Short-Term.
Category: Investing » Foster Group Investment Principles
As the NCAA tournament wraps up, many sports fans are reflecting on their brackets, winning their office pools, and bragging rights with friends. Similarly, others focus on their investments and trying to predict which stocks will perform the best. We may think of these as two separate worlds, but there are numerous similarities between the two.
Do You Have an All-Weather Portfolio?
While no portfolio is designed to perfectly handle every scenario, we believe that thoughtful planning, combined with evidence-based portfolio construction, can help investors achieve a higher probability for long-term success in various market conditions.
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.
The Future is Uncertain. Better to Prepare than Predict.
Category: Investing » Foster Group Investment Principles
Because I work for Foster Group, a firm dedicated to truly caring for the financial lives of those we serve, a lot of the conversations we have with regard to this uncertainty relate to money