After a long period of relative calm in the markets, the increase in stock market volatility in recent days has renewed anxiety for many investors.
What should you make of recent ups and downs in the stock market? Here’s helpful context on volatility and expected returns.
So that’s what market volatility feels like! It has been a while since we’ve had dramatic swings in stock markets across the globe. But these past few months have been a reminder of how volatile markets can be.
There are many ways to make a fortune. You might inherit money, win the lottery or build a thriving business and sell it. You can also work hard in your career, save and invest with discipline. Making a fortune often includes elements of risk and luck.
Equity markets have once again turned down this morning after yesterday’s rebound. For global stock market investors, the news in 2016 has been marked by...
It’s interesting that Warren Buffett, the fourth wealthiest person in the world (according to Forbes) and one of our most successful investors, offers some sage investment advice to his adoring public that is largely ignored. His simple message to investors is to avoid trying to beat the market.
The wicked witch in The Wizard of Oz screeched this infamous line at the climax of the movie, and we were all relieved as she evaporated, leaving behind nothing but her black hat. But unlike film viewers, many gold investors won’t be rejoicing when this precious metal starts to melt down.
During times of extreme uncertainty and fear, investors are drawn to gold. In prior centuries, gold was the globally-accepted source of power and wealth for kings, empires and aristocrats. As children we read stories and watched movies about gold...
Jeff Troutner of TAM Asset Management coined the terms “wade” and “plunge” for investing a sum of capital slowly over time or all at once. The wading approach has historically been known as dollar-cost-averaging. Proponents of wading view plunging as reckless and argue wading is much more sensible for the risk-adverse investor. Proponents of plunging believe that wading reduces returns more often than it increases them.
Market timing adds uncertainty, reduces efficiency, and increases taxes and costs. Thus, it reduces the probability of achieving long-term goals. Systematically adhering to an investment policy uses the opportunities inherent in appropriate asset classes to maximize the probability that you will achieve your goals.