Posted in Investment

Investing During a Bear Market

Lately, financial pundits seem to be constantly warning that a bear market is coming, arguing over whether one has begun or predicting when one will end. It’s less common for them to actually define one. From their ominous tone, you can tell it’s less appealing than its counterpart, a bull market. But what is it exactly? How does it differ from other market fluctuations? And how long does one last? What is a bear market? A bear market is an…
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How Diversifying Your Portfolio Can Help Mitigate Risk

Risk is an inherent part of investing. After all, no one can control the losses or gains of a particular asset, sector, or the market as a whole. But you can take steps to manage your risk by diversifying your portfolio. Here’s a look at what diversification is, why it matters, and how to do it. What is diversification? Diversification is a technique that can help reduces risk and volatility in your investment portfolio. The idea is to invest across…
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An Introduction to Bond Ladders

An Introduction to Bond Ladders

Bonds play an important role in a diverse investment portfolio. As fixed-income securities, they can provide a stable return until they mature. As with any investment, bonds are subject to a certain amount of risk. Interest rate risk, for one, is the possibility that interest rates will rise after an investor buys bonds, causing them to miss out on potentially higher yields. To mitigate this risk, investors may opt to buy bonds with staggered maturity dates using a strategy called…
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How to weather the correction.

How to Weather a Market Correction

Sometimes stock prices drop across the entire market at once triggered by a range of things, such as a natural disaster, political turmoil, concerns over rising interest rates, a global health crisis, or problems within a single sector that cause a domino effect across the market. A decline in stock prices of 10% from their most recent high is called a market correction. Long-term investors experience many of them over the course of their lives. So, if you’re investing for…
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timing the market

4 Tips to Help You Avoid Timing the Market

Sudden ups and downs in the stock market can be hard to ignore. It’s common to get the urge to sell when you see your investments lose value — or to buy when the market is surging. But predicting the effects of short-term market movements like these is nearly impossible. And efforts to “time the market” can backfire, undermining your ability to grow your savings. If you sell right after the market drops, for instance, you’ll lock in your loss…
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Stock Market Risks in the Spotlight

During March 2021, the widening availability of COVID-19 vaccinations, signs of improving economic conditions, and a third, $1.9 trillion stimulus package brought about more optimistic growth projections. Even though a healthy economy could be good news for many businesses and the financial markets, rising inflation expectations caused a multi-week sell-off in U.S. government bonds that pushed up longer-term yields and sent the Nasdaq Composite Index into correction territory on March 8, 2021.1 Promising a patient approach, the Federal Reserve stated…
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International Investing: Opportunity Overseas?

For the past decade, U.S. stocks have outperformed foreign stocks by a wide margin, due in large part to the stronger U.S. recovery after the Great Recession. In general, U.S. companies have been more nimble and innovative in response to changing business dynamics, while aging populations in Japan and many European countries have slowed economic growth.1 Despite these challenges, some analysts believe that foreign stocks may be poised for a comeback as other countries recover more quickly from the effects…
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A Steady Strategy

One of the most fundamental truths of investing is that you can’t time the market. As legendary investor and economist Bernard Baruch put it, “Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars.”1 Even so, it’s natural to wince a little when you buy an investment only to see the price drop, or sell only to see the price rise. And no matter how much you try to make objective…
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Five Investment Tasks to Tackle by Year-End

Market turbulence in 2020 may have wreaked havoc on your investment goals for the year. It probably also highlighted the importance of periodically reviewing your investment portfolio to determine whether adjustments are needed to keep it on track. Now is a good time to take on these five year-end investment tasks. 1. Evaluate Your Investment Portfolio To identify potential changes to your investment strategy, consider the following questions when reviewing your portfolio: •How did your investments perform during the year?…
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Markus Winkler

Tapping Retirement Savings During a Financial Crisis

As the number of COVID-19 cases began to skyrocket in March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The legislation may make it easier for Americans to access money in their retirement plans, temporarily waiving the 10% early-withdrawal penalty and increasing the amount they could borrow. Understanding these new guidelines and the other rules for loans and early withdrawals may help you determine if they are appropriate options during a financial crisis. (Remember that tapping…
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