When stock market performance outpaces expectations for an extended period, as it has recently, the anticipation of a market correction (a drop of 10% of more) can worry investors. But, should you be concerned? After all, significant drops in the stock markets are fairly common, as are rebounds and new highs. While market fundamentals play a large role in these fluctuations, so does investor sentiment. This makes it impossible to…
What are investor expectations about market returns are moving forward, and why they are unreasonably high relative to the expectations of financial professionals. What a recent study shows about financial lessons learned from the pandemic. How is the fed changing its stimulation plans. Inflation jumped, and is causing debate. Three times the level of volatility risk is projected to be required for the same level of return vs. 20 years…
There has been a lot of talk lately about inflation, in great part because inflation has been so low for so long, but recently had a small spike. Unfortunately, when inflation is low, investors tend to forget it is a “sleeper risk,” gradually eroding their purchasing power and lowering after-inflation returns. Below are thoughts to consider. Why does monetary policy matter when it comes to inflation? Historically, periods of major…
Vaccines picked up speed but are hitting some bumps, spring fever and more spending is in the air, all of that and big stimulus is causing markets to continue to defy the pandemic, but diversification still matters. See a dynamic video showing how the top-10 stocks in the S&P 500 has changed over last 20 years (hint.. a lot!). Learn how interest rate increases can hurt bond returns. See a…
Does money buy happiness? Wealth and happiness are often paired together. As you earn more income, invest more into the market, or reduce your debt, you likely feel more life satisfaction. This seems obvious, and many studies* prove this to be correct. However, in a study conducted by researchers from UC, Riverside, a surprising factor emerged about how you can improve your overall feeling of well-being: the amount of cash you have…
What if you had the recipe of life choices that could help you live longer, healthier, and happier? That is exactly what studies show happens in “Blue Zones,” parts of the world with unusually high numbers of happy centenarians. If you don’t live in a Blue Zone, you do not have to move. You can strive to create your own Blue Dot right where you are. Read on for some of…
In the midst of the COVID-19 pandemic, the term rebalancing now extends past investment portfolios as we all rebalance our lives around staying at home, creatively social distancing, and protecting our health. It is a rebalancing act that people did not anticipate; we’re all learning lessons that will linger on once this crisis is behind us. The rebalancing that WealthStep does for 401k plans and “WealthStep Direct” individual clients, however, is…
Gain perspective about the confluence of events affecting the markets, including the coronavirus. What are the drivers of current volatility? Where do markets and diversified portfolios stand now? How does this market compare to the many volatile markets in the past? See how bad markets have strong recoveries. See why panic is not an investment strategy. See how an even bigger drop would still leave investors with solid medium-term average…
