Depending on the winner of the presidential election, there’s something you’ll absolutely want to do with your portfolio. If Clinton wins, you should… …do nothing. But on the other hand, if Trump wins, you should… …also, do nothing. Were you expecting a big secret? An actionable insight? No one knows what’s going to happen in any market, for any reason, at any time. Period. If someone tells you otherwise, they either don’t understand history, or they’re trying to sell you something. In either case, there’s no upside for you. Mountains of data, research, and science confirm our claim. If the …
The Risk of Investing, As Demonstrated by John’s Mom
Of the hundreds of people we help with their investing needs, only one person called in panic during early February, and again, two days after the Brexit vote. It was John’s mom. And that makes her perfectly normal. As a recap, the market started the year by sliding over 12% through the first five weeks. Then England shocked the world by voting to leave the EU, and we dropped another 6% in only two days. As humans, we are programmed to avoid danger, and our brains translate market downturns as danger. Furthermore, studies show that we feel discouraged by an …
So What Happens Next?
What a Tough January Means to the Market At lunch time on January 20th, the S&P 500 index was down 11.3% for the month, on its way to the worst January return ever. By month’s end, it settled at negative 4.93% – a welcomed paring, but a shot in the gut nonetheless. It was the ninth worst January for the index since 1926, and the worst two-week start ever. We’ve heard rumblings that this descent portends disaster for the rest of the year. The best way to determine this is by using the data. Take a look… No need to …