With the surging economy and the recent shift in monetary policy, many investors are worried about rising interest rates and potential inflation. A little historical information can provide valuable perspective.
Becoming a Behavioral Wealth Advisor goes beyond reactive coaching. It means taking a proactive approach to wealth management designed to build confidence and minimize behavioral triggers and biases that can destroy wealth.
The last few years in the market have been as good as it gets with strong economic growth, increasing profitability, low volatility and surging markets. Everyone wants to know how long will the party last and what will the market do next? As the table below shows, there is little mystery regarding the new year’s expected return.
A new measure reveals when the odds are stacked in favor of active managers and when it might be best to go passive.
By C. Thomas Howard, PhD
It’s important for investors to understand how different investment strategies work and how each performs under various market conditions. The chart below highlights 10 investment strategy groups and their performance ranking over the last decade. When building long-term growth portfolios, allocating among different strategies can help to reduce anxiety without sacrificing returns.
Since the 2009 financial crisis, value investing has struggled to keep up with the broad market and had an even tougher time keeping pace with high-flying growth stocks. This long stretch has led investors to consider dumping their value investments for passive indexing or growth strategies. We think a little long-term perspective is needed and dumping value for growth now could be a costly mistake.