Does market volatility make investors behave irrationally? Or do irrational investors cause the market to be volatile? It may seem like a chicken-or-egg debate but it is a useful discussion to have, especially as investors struggle to stick to their investment plans and find themselves off-course from their investment goals. Let’s look at recent activity in the stock market to uncover some insights that can help you as an investor manage through volatile market periods. In the fall of 2014, the stock market experienced one of its more turbulent periods in recent years. During this time, the benchmark S&P 500 […]
Why work with a fiduciary for your financial plan.
June 10, 2015
You may have heard or read a lot about fiduciary standards lately. The increase in interest comes as the U.S. government proposes tougher rules for financial representatives to follow when making investment recommendations, ensuring that investors’ best interests are served first and foremost. On the face of it, any debate about this proposal seems absurd—why wouldn’t a professional who’s in business to offer a service to clients strive to work only in their clients’ best interest? But in the financial industry, bias and conflicts of interest have long been commonplace as firms seek efficient ways to raise assets and grow […]
Home ownership has long been a pillar of the American dream. And many Americans are invested heavily in the value of their homes—not just financially but emotionally as well. A recent Gallup survey shows just how strong that bond is. In an April 2015 nationwide survey, real estate topped the list of best long-term investments, with 31 percent seeing more opportunity in the housing market than in stocks, bonds, gold or cash. Unfortunately, this is a case of people looking at the world through their rose- colored front windows. When you compare the long-term returns of real estate and stocks, […]