July 2022 Educational Video
As you probably know, bears and bulls are common references used within the stock market.
A bull will typically raise its horns upward to attack, while a bear will reach its head downward to attack.
Specifically, a bear market is when the overall stock market drops in value by 20% or more from its recent highs.
Bear markets can be difficult for investors, as they seen their portfolio go down in value, but bear markets are nothing new.
Between 1929 – 2020, there have been 26 bear markets.
Each of the 26 bear markets has been followed by a bull market, providing solid gains to help make up for losses.
During bear markets, stocks average a drop of approximately 36%.
However, during bull markets, stocks average a rise of approximately 114%.
Also, on average, bear markets last an average of 289 days, while bull markets can run upwards of 991 days.
Not only that, some of the strongest days of the S&P 500 index have actually occurred during bear markets, so trying to time the market right can be nearly impossible.
So what should you do?
Keep investing for the long term, knowing that buying in a bear market is like buying during a sale, knowing that there is a great opportunity to reap the rewards down the road.
Still have questions? Contact us to discuss your investments today!
June 2022 Educational Videos
Trying to manage your investments by yourself in a panic, with a lot of market volatility, may be overwhelming.
Many investors try to time the market’s ups and downs and change their portfolio investments accordingly.
Research shows that this strategy hasn’t worked well for investors.
Dalbar’s Quantitative Analysis of Investor Behavior measured the effects of investor decisions to buy, sell, and switch into and out of mutual funds over short and long-term time frames.
Over a 30 year period, individual investors underperformed equities, as represented by the S&P 500 Index, by a difference of 7.13% return versus a 10.65% return.
To put that in real dollars, if you invested $100,000 at the beginning of that 30 year period and
However, a 10.65% return would give you $2.082.296.
The bottom line: investor behavior may determine success more than investment performance.
May 2022 Educational Videos
When you were a kid, one of the most fun things to do was ride your bike.
It gave you a sense of freedom and joy with the opportunity to reach a new destination.
Odds are that when you learned to ride your bike, you may have needed training wheels.
When you learned to handle the unknown on your own, you became a confident rider and would have never dreamed of going back to training wheels.
As an adult you can think of investing in a similar way to riding a bike.
It gives you a sense of freedom and joy knowing that you have a financial destination.
Sometimes when the investment “bike” seems a bit wobbly, you may consider adding “safety” measures, because the markets are going up and down and you feel concerned.
When you run to safety with your investments, it’s the same concept as having the additional set of training wheels on an adult bicycle.
As a mature investor it’s normal to have those concerns, but you may want to re-consider putting the training wheels back on your investments.
Doing so may slow you down from reaching your preferred financial destination.
Whether you are considering putting the training wheels on or better yet, taking them off, contact us today to talk.
April 2022 Educational Videos
Anytime there is an invasion, historically, market fluctuation has followed.
Russia’s invasion of Ukraine has already had an impact on the market, gas prices, and inflation.
What does that mean long-term for your investments?
Reuters tracked 29 events they termed as a “Geopolitical Crisis” dating back to Germany invading France in 1940.
What did they find?
After one week the S&P 500 average return was -.8%.
However, after one year the S&P 500 average return was 12.3%.
Let’s look closer at two specific examples that you may remember.
The 1990 Iraqi Invasion of Kuwait had a -3.3% S&P 500 return after the first week, however, after one year the return was 10.2%.
More recently and probably more notably, the 2014 Russian Invasion of Ukraine and Crimea had a .8% S&P 500 return after the first week, and after one year the return was 14.7%.
While we can’t say for certain what will happen within the next year, we can have hope and more importantly, a plan for the future that involves real market fluctuations.
Still have questions?
Contact us and set up a time to discuss your long-term financial goals.
March 2022 Educational Videos
Do you remember Aesop’s Fable, “The Tortoise and the Hare”?
If you do, it really seems like the perfect analogy for the way some investors, and even some financial advisors, build a portfolio.
As you recall, the hare brags about being able to beat the tortoise and is really confident about winning.
In the investment world, the hare is someone who thinks they are great at selecting “winners” and avoiding “losers.”
The “hare” is your neighbor, brother-in-law or the fly-by-night financial advisor who makes you feel like you are missing out when it comes to investing.
In contrast, the “tortoise” is the“slow and steady wins the race” approach to investing that has been shown to grow wealth with more reliability and less risk than the “hare” approach.
While being the tortoise is less flashy and requires an unemotional approach to investing, it can really help by having the right independent financial advisor by your side.
Your financial advisor will work with you to create the right portfolio that matches your financial goals.
While long-term investing isn’t considered sophisticated by the hare, we all know who eventually won the race.
To be more like the tortoise, contact us today!
February 2022 Educational Videos
Are stocks currently overvalued?
If you watch the news or read any of the major financial publications, you will see headlines everywhere stating that they are overvalued and that you should take action now.
So what should you do?
Simply saying that stocks overall are overvalued may be considered a generic statement.
Do you know exactly what areas of the market or which companies are specifically overvalued?
Do you know if there is a large market correction coming?
If so, do you know exactly when it will be here and how long it will last?
Successful market timing requires two correct decisions: when to get out and when to get back in.
Guessing correctly once could prove to be quite difficult. Keep in mind, several financial “experts” have called for you to sell already.
Guessing right twice (remember, you have to know exactly when to get back in the market) may be considered quite the guessing game as well.
One wrong guess and you shoot yourself in one foot; two wrong guesses and you shoot yourself in both feet.
Still have questions? Contact us today to discuss.
January 2022 Educational Videos
Can you believe it is already 2022?
While the last couple of years have taught us resilience and patience, we also know that time moves forward.
That may mean you are one year closer to your financial goals.
Or it may be time to update your goals and your specific financial roadmap.
For example, have you considered the following:
Do you know how the events of the last year affected your planning?
Are your current investments going enough to meet your financial goals?
Has anything changed in your life that would change your future financial needs?
How do taxes or potential tax increases affect your financial plan?
Do you have an estate plan in place?
Planning for your future is a lot more than looking at your checking account and your retirement fund balance.
If you are setting New Year’s resolutions you may want to consider adding a review of your financial plans to the mix.
How prepared are you for your financial future?
Or better yet, do you even know?
If you want to make some real progress on your financial journey this year contact us today!
December 2022 Educational Videos
As the holiday season is upon us, you may be in the full gift giving mood.
However, you have probably noticed that this year may be a little different, because of a shortage of goods due to global supply chain issues.
But why?
First of all, some pandemic restrictions and illness have prevented goods from being produced as they have in the past.
There are a record number of jobs available, meaning there is a lack of warehouse workers, truck drivers, and seafarers.
Also a cargo container shortage has affected global shipments.
And a higher demand for goods impacts the shortage too.
You may also want to know how this impacts your portfolio, since some of your investments may be with companies that are affected by the supply chain shortage.
Do you need a radical change in your portfolio? Should you hide your investments away until things resume to normal?
Our advice?
Be wary of any knee jerk advice on what stocks can beat supply chain disruptions or “guaranteed” investment opportunities that never lose money.
Our clients have a diverse portfolio and professional advisors with their goals in mind.