As we head into the next decade, this complete set of articles delves into the fallacies of always owning stocks for the long run (aka “buy and hold” and passive strategies). Given that market’s cycle over time, it is important to understand how markets, and investing actually work, the impact on your wealth, and what you can do about it.
This series of articles will cover the following key points:
- “Buy and Hold,” and other passive strategies are fine, just not all of the time
- Markets go through long periods where investors are losing money or simply getting back to even
- The sequence of returns is far more important than the average of returns
- “Time horizons” are vastly under-appreciated.
- Portfolio duration, investor duration, and risk tolerance should be aligned.
- The “value of compounding” only works when large losses are not incurred.
- There are periods when risk-free Treasury bonds offer expected returns on par, or better than equities with significantly less risk.
- Investor psychology plays an enormous role in investors’ returns
- Solving the puzzle: Solutions to achieving long-term returns and the achievement of financial goals.
- Spot what’s missing: A compendium of investing wisdom from the world’s greatest investors.
CLICK for articles
As we head into the next decade, this complete set of articles delves into the fallacies of always owning stocks for the long run (aka “buy and hold” and passive strategies). Given that market’s cycle over time, it is important to understand how markets, and investing actually work, the impact on your wealth, and what you can do about it. CLICK for complete article
With the S&P 500 coming off its performance in two decades last year, expectations are in place that returns are likely to be more subdued this year. If historical trends repeat, that subdued tenor could be seen this month as the S&P 500 averaged a January decline of 0.30% over the previous 20 years.
So although January is part of the best six-month period in which to own stocks, the month typically isn’t strong in its own right. The tepid nature of January equity market action is reflected at the sector as just five of the original nine sector SPDR exchange traded funds average gains in the first month of the year.
As for solid sector performers in January, the Health Care Select Sector (SPDR) stands out as the best performer of the original nine sector SPDR ETFs….CLICK for complete article
Last week, I discussed the registering of the monthly buy signals, which confirmed the bull market in the S&P 500 had resumed following the 2018 Fed/Trade induced sell off. Here is a snippet of our history in this regard:
“In April of 2018, I penned an article entitled ‘10-Reasons The Bull Market Ended,‘ in which we discussed the yield curve, slowing economic growth, valuations, volatility, and sentiment. Of course, 2018 turned out to be a tough year culminating in a 20% slide into the end of the year. Since then, we have daily reminders we are ‘close to a trade deal,’ and the Fed has completely reversed course on hiking rates and extracting liquidity. In July, we published “S&P 3300, The Bull Vs. Bear Case.”
While volatility and sentiment have reverted back to levels of more extreme complacency, the fundamental and economic backdrop has deteriorated further.
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Our friends over at Hawkeye Wealth thought our readers might be interested in this latest real estate trend. ~ED
One of the hottest trends in North American real estate is “real estate as a service” (REaaS), a Vancouver audience was told at the Urban Land Institute’s November 26 launch of its 2020 Emerging Trends in Real Estate report, compiled by PwC.
Integral to this trend is putting tenant, customer and resident experience at the heart of real estate design.
This means commercial and residential real estate has evolved to offer customers and residents more than the space alone, adding on layers of experience and amenities that…Click for full article.
2019 has been a good year for the markets, with stocks hitting record highs in both the U.S. and Canada.
Despite mixed economic data, the markets appear to be pricing for future growth.
In the most recent quarter, GDP limped along at just 0.1% year over year, while recent data showed that the economy shed 1,800 jobs last month.
These signals indicate a fairly tepid macro environment, but that doesn’t mean it can’t turn around. In fact, investors as a whole seem to be betting that it will. If you’re one of them, here’s a stock that could be a solid pick….CLICK for complete article