Ignore the Markets; Stay Invested

One of the worst things you can do when the market takes a dip (or a dive) is to immediately pull your money out. While it may seem logical–why lose any more money–it’s almost always the wrong move. Taking money out during a downturn makes it incredibly difficult to take advantage of the eventual upturn. If you understand the tax implications of losses, you further take advantage through smart tax harvesting (I’m not going to get into that here). Now, I’m not talking about divesting your money in one stock and investing it in another that you think is poised Continue reading Ignore the Markets; Stay Invested

Going It Alone Investing? Be Smart About It

Thanks to technology, it’s easy to become an investor these days. All you need is Internet access and a device and you can open a brokerage account. Such ease can be exciting and make one feel as though they have more control over their finances and future. However, it can also be dangerous. The ability to invest your money with the touch of your finger can also lead to a nonchalantness about investing and money. It’s not uncommon for people to get a bit carried away with investing when they first start using apps such as E*Trade or Robinhood. A Continue reading Going It Alone Investing? Be Smart About It

The Stock Market is Emotional. That Doesn’t Mean You Have to Be

If you’ve been investing in the stock market over the years, then you’ve probably heard–and seen–that the stock market moves based on emotion. Things such as societal movements, politics, or financial predictions can force movements in the market to happen. This is also what makes the stock market–and other associated markets–unpredictable. If you don’t understand and respect that unpredictability you can lose a lot of money. However, you don’t have to use emotion to drive your investment decisions. In fact, you should try to keep your emotions as far away from your investment and financial decisions. Using your emotions to Continue reading The Stock Market is Emotional. That Doesn’t Mean You Have to Be

Investing is Based on Luck; Diversification Helps

I’ve touted the importance of diversification here in many posts over the past few years. While it may seem like diversification is the cure-all for any portfolio, I should remind you that regardless of whether you diversify or not, investing is still a risky endeavor that way more often than not involves a lot of luck. That’s not to say you still can research a stock or company you invest in and do your homework–that helps immensely to determine strong performing stocks and to avoid ones that tend to be more volatile. However, no matter how the stock has performed Continue reading Investing is Based on Luck; Diversification Helps

Scratching a “Risk” Itch

As I’ve mentioned in the past, investing can be a great way to grow your nest egg. With a good understanding of your risk appetite and your goals–both long-term and short-term–you can make investment decisions that can put your money to work for you. However, making cautious investment decisions can seem boring at times, especially making decisions regarding long-term goals (i.e. saving for retirement while decades away). It can also be tempting at times to play with the markets a bit and experiment with taking on a little more risk than you normally do. Now, I’m not suggesting you risk Continue reading Scratching a “Risk” Itch

Have Your Checked Your Portfolio’s Asset Allocation Recently?

It’s been a rough month for the stock market and for many peoples’ portfolios. There’s been a lot of money lost and a lot of stress added to the lives to many Americans, regardless of whether they are still working or retired. After all, the markets don’t really care where you are in life or what your plans are. With that in mind, now is a good time to assess your portfolio and take some time to determine where your appetite for risk lies. During your assessment, take some time to find out what changes you will need to make Continue reading Have Your Checked Your Portfolio’s Asset Allocation Recently?

Handling the Bear

Whether you or certain pundits want to acknowledge it or not, we are in a bear market at a moment. What does that mean? It means the markets have fallen–for an official bear market the prices need to fall at least 20%–and investor sentiment reflects that downturn. You’re probably familiar with the term and understand it to be the opposite of a bull market, which is what we were in up until early March. In short, a bull market means things are on an upswing. A bear market is tough to stomach, particularly when it’s not clear when exactly things Continue reading Handling the Bear