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

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

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

The Future is Uncertain, But It Shouldn’t Be Scary

I don’t want to alarm you–I’ll leave that to the news media–but the Coronavirus will change the world we live in. The economic, emotional, and physical toll that this pandemic will have on society and the global economic has the potential to be astounding. It is already changing the way we work and educate and will most likely force us to re-assess your global supply chain and how we as a society can better detect future pandemics. There is going to be a lot of uncertainty in the months ahead, particularly in the markets, and no one knows when or Continue reading The Future is Uncertain, But It Shouldn’t Be Scary

Putting Your Appetite for Risk to the Test

Yes, it’s another blog post about investing. What can I say, it’s a very hot topic right now. Given how many Americans have retirement savings and nest eggs tied up in the stock market, it’s also a very relevant topic. When it comes to investing, risk is a big part of things. Your understanding of it and how much you are willing to take on are foundational when it comes to making investing decisions. Given the recent market volatility, it’s fair to assume that many Americans’ tolerance for risk are being tested at the moment. Most likely, yours probably is Continue reading Putting Your Appetite for Risk to the Test