Making the Most of a Bear Market
If you’re a young professional, negative market returns can carry less weight than you might think. Let’s use 2022 as an example.
If you’re a young professional, negative market returns can carry less weight than you might think. Let’s use 2022 as an example.
We often get asked by clients about different ideas they heard from a friend, a new exclusive deal they got invited into, or, most frequently, a specific company or stock that a friend gave them the scoop on. The reality is that a lot of the “great ideas and deals” never amount to any real return, and many end up going to zero.
We had completed our hike successfully, and the challenges made it more memorable and satisfying. The same is true for all of us as investors.
The month of January was marked by negative returns for global stock markets. But, as the well-worn phrase, “Is your glass half full or half empty?” implies, our view of, or the way we feel about the state of markets as investors, may be more related to our personal dispositions than what the numbers indicate.
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.
People come to terms with the fact they will one day retire. Maybe not in the next year or two but sometime in the next five. Often, it’s a reality they’ve been denying.
Unprecedented! That word had been used ad nauseam in 2020.
Four Dimensional Fund Advisors (DFA) mutual funds that are held in after-tax accounts managed by Foster Group at Schwab and TD Ameritrade will be converted by DFA to Exchange Traded Funds (ETFs) on Friday, June 11th.
Fitch, downgraded US government debt from its pristine AAA rating to one notch lower at AA+. The Fitch downgrade serves as a reminder of the necessity of diversification, as no investment is entirely risk-free.
Stock market risk is the primary focus of the financial news. The reason is simple. The scarier the headline, the more eyes are attracted to it.
Making good decisions and ultimately avoiding costly mistakes can be life-changing. Note that it does not start and end with picking the best player or hot stock but rather goals and a plan.
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.