Investments
20 Second Advisor: Coronavirus and Investment Markets
NOTE: Given the topic, this post is slightly longer than 20 seconds 🙂 In light of the recent COVID-19 epidemic and it’s effect on some investment markets, we wanted to try and put it in perspective. First, let’s remember the doctors, patients, and families who are directly dealing with the virus. We encourage you to…
Read More20 Second Advisor: ETFs vs Mutual Funds
We have a lot of clients asking about the differences between ETFs and mutual funds (active and passive). Determining whether an ETF or mutual fund is better depends on your situation and what you are trying to accomplish. Here are a few key points to remember: ETFs are traded more like stocks, while mutual funds…
Read More20 Second Advisor: 2019 Market Review
2019 was a great year for investors! Further, the past decade produced healthy returns as well. The chart below outlines the 1, 5, and 10 year annual returns for different investments. Click here for our full 2019 Market Review
Read More20 Second Advisor: Investing Tip for the Next Decade: Diversify
When looking back on the past decade, most investors realized favorable returns. It’s easy to have hindsight bias and wish you had invested in the absolute best performing asset class(es). For example, you might look back and wish you had over-weighted investments in the US technology sector. However, in the earlier decade (2000-2009), US technology…
Read More20 Second Advisor: Trading Stocks Just Got A Lot Cheaper.
This week Charles Schwab announced that they will no longer charge for online trading of stocks, ETFs, and options. Prior to the announcement, Schwab was charging $4.95 per trade. Just this morning, TD Ameritrade also announced that they will cease charging customers trading commissions for online trades of stocks, ETFs, and options (see the official…
Read More20 Second Advisor: “The Worst Day Of The Year” & How You Should React.
I was reading the financial news this afternoon. The headline said, “Dow Plunges 800, Worst Day of 2019.” For many investors, that headline will cause some anxiety. Ultimately, every year will have a “worst” day as well as a “best” day. Below is a list of the best and worst days since 2008. Despite all…
Read More20 Second Advisor: Investing near an all-time high in the stock market.
Investors should not be surprised by market highs; in fact, they should happen fairly regularly if stocks are gaining value over the long term. For some investors (especially those close to retirement), a market high can feel more like an indicator to “get out” rather than to celebrate rising prices. If you feel anxious when…
Read More20 Second Advisor: Why you should diversify globally
We all know that US stocks have significantly outperformed international stocks in recent years. Because of this and the fact that many US based multinationals are major players in the world economy, many clients have asked whether international diversification is unnecessary. Not at all. A few reasons to continue investing internationally: International stocks represent about…
Read More20 Second Advisor: My private investment is fancier than your public investment! Or is it?
I often hear of investors (or even other advisors) who want to buy private equity investments with the hope of achieving better returns. Private equity is owning a company that is not publicly traded (ie it’s private). Private equity usually has little liquidity (b/c there is no public market for the shares). Private companies often…
Read More20 Second Advisor: Wild Returns – Why You’ll Rarely Have A 10% Return (in a given year).
I often try to gauge a client’s understanding of investing by asking, “What is your return expectation/hope for your portfolio?” Conservative investors will often want 4-6% returns. Aggressive investors may hope for higher returns (maybe 8-10%). Unfortunately, it is VERY rare to get returns in this range. Investing is all about bearing the UNCERTAINTY of…
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