Since we were unable to answer all of the questions asked during the live webinar, we'd like to share some of the questions and answers in written form.
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?
Unprecedented! That word had been used ad nauseam in 2020.
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.
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?
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.
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?”
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!
You know the old saying, “What goes up must come down.” Currently everything seems to be going up at the same time.
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!
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.
Sometimes headlines are right, but remember they are created to get your attention, not necessarily to provide you with helpful information.
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.
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.
On Average, women tend to live longer than men. What does that mean when it comes to retirement planning and income?
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.
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.
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.
