Hindsight is 20/20. It’s only human to imagine what it might have been like to turn left instead of right on some fateful day. However, that sort of daydreaming is unhelpful when investing, especially when it leads you to try timing the market.
Since the beginning of the COVID-19 outbreak, we’ve seen a great deal of volatility. But, in the two months since March 23rd’s record low, the S&P 500 has risen 33%. While past performance doesn’t guarantee future results, it shows how quickly market sentiment can change. 1,2
I prefer a disciplined approach to investing. I combine a person’s goals, time horizon, and tolerance for risk with my own understanding of the overall economic landscape. It boils down to this: in timing the market to avoid the “bad” day, you risk missing the “good” days, too.
Missing even just a few of those “good days” can really add up.
A national investment firm looked at a $10,000 investment into the S&P 500 for 38 years. By missing only the five best days over that period, the investment grew to $458,476. Meanwhile, if the money remained in the account untouched, it would have grown to $708,143. Past performance is no guarantee of future returns, but this illustration shows the long-term power of “time in the market vs. timing the market.” 3
As your financial professional, I understand that volatility can cause anxiety, and it can be tough to sit still when it’s happening. But as we’ve seen lately, it may sometimes be best to tune out the noise and trust the strategy that’s already established.
I always look forward to answering your questions, so if you have any, please reach out and let’s set up a time to talk. If you’d like, a recent Epic Market Minute video quickly discusses the importance of taking a few shots when you have a chance.
With overseas investments, we remind people that, “international markets carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risk, foreign taxes and regulations.” The Chinese markets are no exception to that.
Summer jobs are a perennial aspect of the American workforce. It’s a time when teenagers are filling out applications and, in many cases, earning wages of their own for the first time. But some of what we’ve become accustomed to may be changing.
High net worth investors face investment challenges that some would consider unique to their financial status. The fundamental tenets of investing apply just as equally to them as any other investor, but these investors need to be mindful of issues that typically arise only from substantial wealth. Let’s examine a few of these.
Corporate earnings season has begun, and the results are turning heads on Wall Street. Of the 120 companies in the S&P 500 index that reported numbers as of Friday, July 23, 89% of them beat the Street’s earnings-per-share estimates by an average of nearly 21%.1
Given the threat of COVID-19, seniors today may be considering their eldercare alternatives with extra caution. In addition to health factors, the cost can be an issue. According to Genworth’s 2020 Cost of Care Survey, the median annual cost of a semi-private room in a nursing home is now $90,000. A single-occupancy room may cost … Continue reading “Eldercare Choices in the COVID-19 Era”
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