People who trade the stock market frequently aren’t concerned about performance over time. They’re concerned with performance each week, day, or even hour. However, when you’re a long-term investor, reference is often made to how the market performs ‘over time.’ Long-term investing, by definition, implies a longer duration.
The AARP Bulletin recently included an article on Super Agers. By definition, a “super ager is someone over 80 with an exceptional memory – one at least as good as a person 20 to 30 years younger.” Based upon the research cited in the article, super agers are quite rare, comprising less than 10% of the population.
Over the past year, it’s likely you were mailed at least one letter from a major retailer advising you they were the victim of a security breach, and that your data was likely compromised. What’s also likely is either: (a) The letter went unopened because you assumed it was junk; or (b) You read the letter and tossed it into the trash, assuming there was nothing you could do about it. As with almost all things security-related, it’s probably time to change that behavior.
It’s a fair question, so we’ll both ask and answer it. While we believe we add value to our clients in excess of managing their portfolios, it’s not always easy to quantify the value of the work that we do. In years past, companies like Vanguard have probed this subject. The most recent attempt to value a financial advisor comes from Russell Investments, as published in the 10th edition of their “Value of an Advisor” study.
Market performance over the past two months may have you assuming the market is headed for a down year. While how the market will finish the year is still unknown, downturns don’t always lead to down years. The reality is downturns are often part of the intra-year market cycle.
Older clients may recall a late 1950s/early 1960s TV show titled; “Who do you trust?” The show host – a task handled by Johnny Carson for a few years - would ask a husband and wife a question. The husband and wife would then decide who among them they trust to answer the question.
We often write about the benefits of diversification within a portfolio. Diversification entails building portfolios with multiple asset classes; asset classes that don’t all correlate with each other. Sometimes, one asset class, such as fixed income, will lose value while another asset class gains value.
Not only should you ask yourself that question, but you should also wonder about the security of the phones owned by those you love (especially seniors). An article in The Wall Street Journal provides a few useful questions you can ask when the opportunity for a conversation presents itself.
Gone are the days when the pleas of a Nigerian prince offering us millions in lottery winnings (via email, no less) were clearly too good to be true. Cybersecurity fraudsters continue to hone their skills on a daily basis. Once again, it's time to take note...this time, with a focus on AI, or artificial intelligence.
There's a lot of information out there about Social Security - let's separate the fact from fiction.