For long-term investment goals such as retirement, time can be one of your biggest advantages. That’s because time allows your investment dollars to do some of the hard work for you through a mathematical principle known as compounding.
On January 25th of this year, the Dow Jones Industrial Average (DJIA/Dow) passed the 20,000 milestone for the first time ever. Seemingly every media outlet began to host discussions regarding whether investors should get back into the marketplace, how much further stocks can go, and a multitude of other investing-related topics. Continue reading “DOW 20,000 — Does It Matter?”
As the presidential election approaches, more and more articles are appearing with titles such as “Here’s How to Hedge Your Portfolio against a Trump Victory” and “How to Invest if Hillary Clinton Wins the Election.” Yet even in light of the unprecedented polarization surrounding this election cycle, prudent long-term investors should pay these theories no mind. Continue reading “How the Election Will (Not) Impact Your Portfolio”
(click to enlarge)
As a follow-up to our blog post from July 27, 2016 entitled The Perils of Investing In Leveraged Funds, we wanted to illustrate what has happened with two popular leveraged commodities ETFs. Continue reading “The Perils of Investing in Leveraged ETFs — Illustrated”
In the investing world, returns are always in demand, but the path by which investors pursue these returns can be very detrimental to a portfolio’s health. Leveraged funds, which have been around for two decades now, seek to beat the market returns of their unleveraged, index-tracking counterparts by essentially increasing the stakes of the bet through the use of derivative instruments. The idea seems straightforward, but the results are not always what investors expect them to be.
Factor investing, which revolves around an investment according to specific, pre-determined characteristics (“factors”), has piqued the interest of many in the investing world as investors hope they can finally beat the market on a consistent basis. According to MSCI.com, indexes can be constructed according to these six risk factors: Value, Low Size, Low Volatility, High Yield, Quality and Momentum. By doing so, factor investing combines simplicity, transparency, and the affordability of indexing with the irresistible prospect of “beating the market,” which explains its surge in popularity over recent years.
With great risk comes great reward – and it’s no different in the world of investing. Today’s investors are increasingly taking on more risk though, in the form of owning more stocks, in order to achieve a higher return on their investments. According to A Wealth of Common Sense, a blog by Ben Carlson, investors now own about as much stocks as they did at the market peak in 2007. Here are some reasons why investors are increasing the equity exposure in their portfolios today:
We’ll skip the fancy charts and graphs for this post to convey in a concise manner why we think you should avoid getting bit by the Gold Bug, even as the metal’s price has increased materially so far in 2016.
J.P. Morgan Asset Management’s 2016 Guide to Retirement makes two interesting observations on life expectancy. While most people know that the average American is living longer due to several factors, including advancements in healthcare, another point is often overlooked: the narrowing life expectancy for men and women.
With volatile and uncertain capital markets as of late, prudent investing is more essential than ever. However, many investors have had a hard time keeping calm and staying on track with a financial plan in such an unstable market environment. In many scenarios, Continue reading “5 Common Mistakes Threatening Your Portfolio”