November 15, 2021

When market conditions change, investors often feel compelled to do something. To that end, we can agree on one point: it’s challenging to stand by and watch events transpire. The typical working assumption is: Something I own must be sold; something I don’t own must be bought, because, well, things are going to change. But what if doing nothing is the best thing you can do?

November 15, 2021

Over the years, various terms have been applied to explain ways to invest ‘more responsibly.’ Terms such as SRI (Socially Responsible Investing) and ESG (Environmental, Social, and Governance Measures) were early to the market. Now, almost any combination of the words Sustainability, Green, Ethical and/or Eco will attract investment dollars.

September 30, 2021

When the Dow Jones Industrial Average was at more pedestrian numbers, like 6,000, 8,000, or even 10,000, market drops of 600, 700, and 800 points caused quite a stir. That reaction was logical, as a drop of 600 points when the Dow was at the 10,000 level meant a loss of 6%. A drop of 600 points when the Dow is at 30,000, however, represents a loss of 2%. Yes, it’s still a loss, but a drop of that size in today’s stock market means a substantially smaller loss to a diversified portfolio.

September 30, 2021

In a brief titled “Rising rates don’t negate benefits of bonds,” Vanguard¹ addresses arguments that target why investors shouldn’t own bonds in a low interest or rising interest rate environment. They start with a point we’ve made ad nausea over the years: “…the role bonds play in a diversified investment portfolio – to be a shock absorber at times when equity prices head downward.”

August 15, 2021

Over the years, we’ve written frequently about the potential perils of trying to time markets. Often, we refer to the need to make two critical decisions, both at precisely the right time: when to sell and when to re-buy. Both decisions are equally important, and erring on either (or both) can be costly. A new study adds yet another reason, which might be surprising to learn: moving in and out of stocks actually adds volatility to a portfolio.

June 30, 2021

If you’ve seen this movie before, raise your hand. Every year, business writers and market observers try to steer their audiences to their portfolio choices du jour. Small-cap growth? Dead! Large-cap value? Buy! International? Never! Emerging markets? Garbage! Bitcoin anyone?

May 15, 2021

For a hundred years or more, investors have been seeking the holy grail of investing: how not to lose money in the stock market. Finally, MONEY.com¹ has revealed the answer, and it can be condensed into two words: Don’t sell!

February 15, 2021

Whenever someone used to try a new task that didn’t turn out well, the line used against him/her was “Don’t quit your day job.” If your neighbor saw you do a house repair that didn’t go well: “Don’t quit your day job.” Fail to properly change the oil in your car: “Don’t quit your day job.” The point, obviously, was to continue doing the job that someone is paying you to do because you weren’t going to make a dime doing anything else. 

September 30, 2020

A few weeks ago, we moved my 98-year-old mother from independent living to long-term care. One of the reasons why we selected the community where she lives is because they have a continuum of care, to include independent living, assisted living, and skilled nursing.

September 30, 2020

As many long-time investors know, the stock market doesn’t react well to uncertainty. What the market does reward is constancy: interest rates that don’t fluctuate to any great degree; an economy growing on a gradual incline; and a lack of drama. When it comes to 2020, put a check next to constancy in interest rates, as there’s no sign they’ll go higher, potentially for the next few years. And then put your pens down; the quiz is over.