In today’s world, doing it yourself investing is easier and harder than ever. The multitude of investment choices out there is staggering and confusing. Few people truly have the time, skills, and discipline to go it alone. We are here to help.
When people follow their natural instincts, they tend to apply faulty reasoning to investing.
People may struggle to separate their emotions from their investment decisions.
Following a reactive cycle of excessive optimism and fear may head to poor decisions at the worst times.
The market’s pricing power works against mutual fund managers who try to outperform through stock picking or market timing. As evidence, only 14% of US equity mutual funds and 13% of fixed income funds have survived and outperformed their benchmarks over the past 15 years.
Some investors select mutual funds based on their past returns. Yet, past performance offers little insight into a fund’s future returns. For example, most funds in the top quartile (25%) of previous three-year returns did not maintain a top‐quartile ranking in the following three years.
The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.
Picking the Fastest Lane is a Stressful Guessing Game. Likewise, trying to anticipate the movement of the market adds anxiety and undue risk.
You never know which market segments will outperform from year to year. By holding a globally diversified portfolio, investors are well positioned to seek returns wherever they occur.
Holding securities across many market segments can help manage overall risk. But diversifying within your home market may not be enough. Global diversification can broaden your investment universe.
Daily market news and commentary can challenge your investment discipline. Some messages stir anxiety about the future while others tempt you to chase the latest investment fad.
When headlines unsettle you, consider the source and maintain a long‑term perspective.