It’s Always a Good Time to Talk About Risk and Volatility

In the 68 trading days in the U.S. stock market from 11/11/16 to 2/17/17, the Dow Jones Industrial Average (DJIA) set new all-time high records on 26 of those days. In the last seven consecutive days over the same period, the Dow closed at a new record every day. Continue reading

Helping Your Clients Stay Calm Even When Markets Are Not

Since many of you may be getting questions about what the election results may mean for client portfolios, we have put together some resources to help educate clients and provide perspective.
The most important thing to keep in mind is that stocks have done well during the tenure of nearly every modern president, regardless of party affiliation. (See link below)
The results of the election, which caught most pollsters and pundits by surprise, are just one more in a long series of predictive failures this year, from the doom saying in January (“Sell everything”), to the failure of a peace referendum in Colombia, to Brexit.
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There is Always a Reason to Sell…Unless You Want to Achieve Your Goals

blog_360_williamThis article is featured in the fall edition of our 360 Insights Quarterly Client Newsletter.
The problem with good advice is that it tends to be boring, especially when it comes to your portfolio.
This is a good thing.
For investors, excitement can be your worst enemy. Excitement generates headlines; it causes people to be greedy or fearful; it drives volatility and speculation — all resulting in too many people compromising their financial futures. Continue reading

Invest for the Long Term

Driving on an empty road towards the setting sunThis article is featured in the fall edition of our 360 Insights Quarterly Client Newsletter.
This is the last article of a four-part series to help you understand our investment approach — and why it matters to you.

Long-term perspective, discipline and patience are the most important ingredients of portfolio success. But emotional, short-term behaviors like panic selling at lows and elated buying at highs can have detrimental long-term consequences, including dramatic portfolio underperformance.
Consider the daily returns of the Dow Jones Industrial Average (DJIA) from 1991 to 2015. A $1,000 investment over that period would grow, assuming dividend reinvestment, to $12,016. But if you were out of the market on the 10 best days, your $1,000 investment would have grown to just $6,141. This illustrates the value of staying in the markets for the long run rather than jumping in and out of the market.
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Keep Your Eye on Your Goals

If someone asked you, “Why is wealth important to you?” what would be your answer? In a survey of high-net-worth families, financial security was the most popular answer, followed by help children become successful, educate children and help the less fortunate.1
Financial security is more than money in our portfolios; it is the confidence that we can continue to live in dignity and support ourselves financially rather than rely on our children.
A diversified portfolio that follows our Investment Policy Statement is most likely to get us to our long-term goals — like financial security and helping our children — yet we worry daily as we watch markets go up and down. Continue reading

WHY Global Stock Markets May be the Greatest Creators of Wealth We Have Ever Known

I cringe whenever I hear someone say that they’re, “playing the stock market.” The stock market is not a competitive game, with winners and losers. Instead, it offers the potential for every investor with a globally diversified portfolio and a long-term perspective to win. Here’s why:
If you’re “playing” you’re probably doing a lot of buying and selling based on what stocks you think will underperform or outperform. But we know from history and extensive research1 that almost no one — not even the smartest and best-educated among us — can consistently and accurately predict which stocks will be winners or losers, or when the market will go up or down.
If you’re playing the stock market, you’re thinking and worrying all the time about whether the “winners” you’ve picked are actually “winning.” Should you buy more? Should you sell? Continue reading

No One Knows What Will Happen with Brexit… But Long-Term Investors Probably Shouldn’t Worry Too Much

This blog is from the July issue of Portfolio Perspectives.
Unlike fans of horror movies, markets hate scary surprises.
On June 22, many markets, even betting parlors, were predicting that British voters would opt to stay in the European Union (the odds went as high as 80% for staying). On June 23, gamblers and markets were proven wrong and stocks fell precipitously around the world, plunging more than 5% in the U.S. in just two days.
Some of the doomsayers from January, when the S&P 500 Index sank more than 10% and then rebounded to positive territory again by the end of Q1, came out of the woodwork to predict new Brexit-related disasters. Even European Council President Donald Tusk said, “I fear that Brexit could be the beginning of the destruction of not only the EU but also of western political civilization in its entirety.” Continue reading