Rolling returns are a great way to measure investment performance (in this example the S&P 500 index). These rolling returns don’t correspond to calendar periods. We begin to understand investing more clearly as we compare the rolling stock market return periods… Read More
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Is Inflation Transient or Structural?
Inflation has been central to the market narrative for the first half of the year. With consumer prices surging and long-run inflation expectations at multiyear highs, we dissect whether rising inflation is technical, transient, or structural. Investors will continue to… Read More
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The Power of Perseverance
THE CASE FOR STAYING INVESTED Although short-term volatility swings can be difficult to stomach, it’s important for long-term investors to persevere. While it may be tempting to pull out of the stock market, investors may miss out on a potential… Read More
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Why Should I Invest in the Stock Market Now?
NAVIGATING THROUGH MARKET VOLATILITY WHERE IS THE MARKET HEADED? Volatility may have some investors contemplating when they should pull out of the market or if they should sit on the sidelines and wait for the best time to invest. If you’re… Read More
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Past Performance is Not an Indication of Future Results
“While results vary from asset class to asset class and from time period to time period, experience suggests that for predicting future values, historical data appear to be quite useful with respect to standard deviations (risk), reasonably useful for correlations,… Read More
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Understanding Risk — Pick Your Poison!
Currently, the public is quite focused on volatility. This is otherwise known as Market Risk—referring to the possibility that an investment will lose value because of a general decline in financial markets, due to one or more economic, political or… Read More
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6 Ways to Fight Fear of Volatility with Facts
You wouldn’t be human if you didn’t fear loss. Nobel Prize-winning psychologist Daniel Kahneman demonstrated this with his loss-aversion theory, showing that people feel the pain of losing money more than they enjoy gains. As such, investors’ natural instinct is… Read More
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When will the Bull Market End?… When Did it Actually Start?
• S&P 500 average length of a bull market is 97 months • S&P 500 average length of a bear market is 18 months Consider what are alleged to be the two longest running bull markets in modern financial history—one… Read More
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Dividends in a Portfolio
WHY CONSIDER DIVIDENDS? Dividend income has represented roughly one-third of the total return on the Standard and Poor’s 500 since 1926. According to S&P, the portion of total return attributable to dividends has ranged from a high of 53% during… Read More
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Interest Rates Rising… What About the Stock Market?
• What is the relationship between interest rates and the stock market? • Can stocks rise in a rising interest rate environment? • Do interest rates impact all stocks the same? Logic, and recent stock market volatility, would seem to… Read More
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Holding Equities for the Long Term: Time vs. Timing
Legendary investor Warren Buffett is famous for his long-term perspective. He has said that he likes to make investments he would be comfortable holding even if the market shut down for 10 years. Investing with an eye to the long… Read More
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Time in the Stock Market + Market’s Resiliency = Potential for Long Term Financial Success
In the last quarterly newsletter, I wrote about the benefits of time in the market and, conversely, the perils of missing the most successful, unpredictably timed, individual positive days in the market. Simply stated it is “time in the market” that trumps “timing… Read More