Some people believe diversification stops at our country’s borders. They believe US companies provide enough diversification. However, the data below shows that portfolios invested only in the US are increasingly missing out on many global investment opportunities. Making a prediction about a single country may bear more risk than taking a more globally diversified approach. “In God we trust; all others bring data.” – W. Edwards Deming
While catching up on sleep may help your health, it would take a miracle to go to sleep earlier one night and wake up with a heap of cash at your bedside. While there’s no one secret or rule that will instantly make you rich, emulating some of the financial habits of the wealthy may help you follow in their fiscal footsteps.
It is always an interesting time to be an investor. As we have discussed previously, people reading the investment news every day without the knowledge of some simple investment principles would be very overwhelmed. The investment jargon, fancy charts, and emotional wording can cause an investor’s blood pressure to rise quickly. It is fascinating to read about today’s investment world being especially “volatile”, “uncertain”, “risky”, and “unpredictable”. In our opinion, these words could describe markets every day.
This report features world capital market performance and a timeline of events for the last quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.
Most Americans have recently completed or are in the process of completing the annual chore of submitting their individual income tax returns to the appropriate government entities. No matter your current economic situation, many people find this a complicating and confusing process. By the time the returns are filed, exhaustion has most likely set in. It does not matter whether you are just collecting the information or actually preparing the returns, this can be a tiring experience.
On March 29, 1999, the Dow Jones Industrial Average (the Dow) finished the trading day above 10,000 points for the first time since the index was first published in 1896.
“Luck plays a big role. Athletes, poets and businesses get lucky. Hard work is critical, a good team is essential, brains and determination are invaluable but luck may decide the outcome.” Phil Knight, Shoe Dog: A Memoir by the Creator of Nike. An investment philosophy is a set of principles that guides all portfolio decisions.
In 2016, the US market reached new highs and stocks in a majority of developed and emerging market countries delivered positive returns. The year began with anxiety over China’s stock market…
Nothing takes you away from dwelling in the past or agonizing about the future like living in the present” – Roy T Bennett, The Light in the Heart. As we bring another calendar year to a close, we look back at what a year it has been. It is important to reflect and to learn from the past. In reflection, we are often amazed at the events that we experienced and how much different they were then we might have expected. This reflection process is where knowledge is truly gained. Knowing the power of hindsight bias allows us to better …
“The reason our ideas haven’t spread faster is they’re too simple” – Charlie Munger, Vice Chairman of Berkshire Hathaway. Investment philosophies can be as simple or complex as investors want them to be. Many investors believe that the more complex the structure or plan, the more valuable it must be. History is full of examples proving this belief to be wrong. Unfortunately, financial institutions are well aware of these investor beliefs so they have marketed complex products and services. Maybe they will work or maybe they will not. Either way, investments typically do not move in one direction all the …