What History Tells us About US Presidential Elections and the Market

Our colleagues at Dimensional Funds shared these stats with us, so we thought it a prudent time to share the information here,  on our weekly blog.

  • It’s natural for investors to look for a connection between who wins the White House and which way stocks will go. But as nearly a century of returns shows, stocks have trended upward across administrations from both parties.
  • Shareholders are investing in companies, not a political party. And companies focus on servicing their customers and growing their businesses, regardless of who in the White House.
  • US presidents may have an impact on market returns, but so do hundreds, if not thousands, of other factors – the actions of foreign leaders, a global pandemic, interest rate changes, rising and falling oil prices, and technological advances, just to name a few.
  • Stocks have rewarded disciplined investors for decades, through Democratic and Republican presidencies. It’s an important less on the benefits of a long-term investment approach. 

Continue reading “What History Tells us About US Presidential Elections and the Market”

Turbulent Times: Bear Markets Come and Go

The longest bull market in history lasted almost 11 years before coronavirus fears and the realities of a seriously disrupted U.S. economy brought it to an end.1

Bear markets are typically defined as declines of 20% or more from the most recent high, and bull markets are sustained increases of 20% or more from the bear market low. But there is no official declaration, so often there are different interpretations and a fair amount of debate regarding when these cycles begin and end.  Continue reading “Turbulent Times: Bear Markets Come and Go”

Coping with Market Volatility: Cash Can Help Manage Your Mindset

Cash Can Help Manage Your Mindset

Holding an appropriate amount of cash in a portfolio can be the financial equivalent of taking deep breaths to relax. It could enhance your ability to make thoughtful investment decisions instead of impulsive ones. Having a cash position coupled with a disciplined investing strategy can change your perspective on market volatility. Knowing that you’re positioned to take advantage of a downturn by picking up bargains may increase your ability to be patient.  Continue reading “Coping with Market Volatility: Cash Can Help Manage Your Mindset”

Coping with Market Volatility: Continuing to Invest May Help You Stay on Course

Coping with Market Volatility: Continuing to Invest May Help You Stay on Course

https://www.finra.org/investors/insights/cares-act-2020-retirement-fund-access-and-student-loan-relief

In the current market environment, the value of your holdings may be fluctuating widely — and it’s natural to feel tentative about further investment. But regularly adding to an account that’s designed for a long-term goal may cushion the emotional impact of market swings. If losses are offset even in part by new savings, the bottom-line number on your statement might not be quite so discouraging. And a basic principle of investing is that buying during a down market may help your portfolio grow when the market turns upward again.  Continue reading “Coping with Market Volatility: Continuing to Invest May Help You Stay on Course”

Coping with Market Volatility: Avoid Rash Decisions

During periods of market volatility,  avoid making investment decisions based on emotions.

If you’ve been watching the market lately, perhaps the first question on your mind is, “Should I make a big change in my investments?” In reality, a volatile market isn’t the best time to do a complete makeover of your portfolio, especially if you have long-term financial goals you’re trying to address. Even if you feel that your portfolio needs adjusting, maintaining a firm grasp on your fundamental investment strategy can help you be more thoughtful about making any changes. Continue reading “Coping with Market Volatility: Avoid Rash Decisions”

An Investment Perspective of the Coronavirus

Mark Twain once said, “History doesn’t repeat itself, but it often rhymes.”

With that in mind, I want to share some historical perspective which may help us look forward at this new virus, and what it may mean from an investment perspective.  Please follow this link from one of the industries leading partners, at Morningstar.   2020_Coronavirus

If you have any questions, please do not hesitate to reach out to us.

Message from Christine & Royal

Happy Spring!  Yes, it is here, and despite our ever-changing weather, we can be assured more sunny days are on the way. “Keep your face to the sun and you will never see the shadows.”  What wonderful advice from Helen Keller, as we enter into the spring season. So, although we will still see some snow (shadows), we must keep our thoughts and faces pointed to the sun.

I don’t know about you, but our spring will be packed full.  Later this month, Christine has two business trips, one to St. Louis and the other to Chicago, where she will be meeting with other IPI advisors and sharing Best Practices.  Then in May, we have concerts, rugby games, recitals and finally, a High School Graduation!  In early June, our family will travel again to St. Louis, for the IPI Summer Conference.  In between that, we will host 25-50 ladies in our office during Downtown Neenah’s Ultimate Ladies day, which is always a fun event.

We will also be having our annual Shred Day, which for your benefit, we have extended into Shred Weeks, and we will have the shred bin here in the office from April 15 through the 26th, so feel free to stop by with your bags or boxes of old documents, and we will have the papers shredded on site, on the final day.

This first quarter has been a busy one for us, with tax preparation needs along with market research and planning.  Although the market has recovered well from its December correction, we still have a lot of data and economic signs to look to.  Many of the pundits are watching a global slowdown, with tariffs and China weighing on the market.  Then there is the Fed decision to not raise rates again, for now.  And yet, housing has gotten a boost with interest rates falling and house sales once again taking off.  What all this tells us is there are still good things among the noise. We will remember that we are long-term investors, set to weather the ups and downs, but as your advisory team, we will be watchful and recommended any changes, as we continue through the year.  Until then, keep your face to the sun, and come and see us anytime.