Chasing Investment Performance Results in Far More Losers than Winners Would you like to improve your investment game? Counterintuitively, you don’t necessarily need to master more fancy moves; it may be a more powerful play to simply reduce your biggest investment mistakes. It’s those false moves that usually cost you the most gained ground.
Most of us are asking important questions about this geopolitical crisis. By no means do our financial concerns detract from the greater, human toll. That said, if I can help you remain resolute as the world justifiably severs Russia’s access to capital markets and the global economy, perhaps we can both do our part to restore justice in Ukraine. So, let’s talk about geopolitics and investing during wartime. Here are my key takeaways:
Most investors understand or perhaps accept the fact that they are not able to time stock markets (sell out before they go down or buy in before they advance). The simple rationale is that stock markets are forward looking by anticipating or “pricing in” future expectations. While the screaming negative headlines may capture attention, stock markets are looking out to what may happen well into the future. It is easy to understand why we might be scared about the recent headline inflation numbers and concerned about rising interest. It is very important to keep this in context, which is what we will address today.
As we are revisiting and updating this piece in early February 2022, we are starting to see some volatility in bond and stock markets. Not surprising given the strong equity returns over the past 18 months and the fact that most central banks have stated publicly that they will be raising interest rates to tackle inflation. Before we get into any specifics about what one should or shouldn’t’ do during a bear market, I think it is very important to define exactly what sort of investor you are. Remember, our investment advice is aimed at helping you successfully complete your long-term, multi-generational financial journey. So, if you are a long-term, patient, multi-generational investor then read on so you can get some tips on how you can weather any market storm while you persevere and wait for the inevitable recovery. If you are a short-term trader, then you probably won’t find these pointers helpful. So, let's look back at my thoughts from April 2018…
Sometimes, it takes years for key investment lessons to play out to the point we get to say, “See? Told…
Lately, the wisdom of having adequate cash reserves has been painfully hitting home for many investors. Sometimes, it has spurred…
Every so often, there are things we just know: The earth is round. Whichever traffic lane you’re in moves the…
Individual Stocks are Likely Bad Investments (Speculating) that Result in Underperforming the Market Long-Term In most walks of life, rugged…
Late last year, while most investors were nervously watching market volatility dominate the popular newsfeeds, a group of academics quietly…
Count on an Evidence-Based Investing Approach to Withstand the Temptation to Cut and Run When the Market is Scary “Buy…
Copyright © 2020 Steve Lowrie, CFA · All Rights Reserved. Lowrie Financial is a division of Polaris Financial Inc.
