This recent short stint of growth outperformance may be prompting investors to question “Is the latest value run over?” Disappointing periods are sure to emerge from time to time, but the principle that lower relative prices lead to higher expected returns remains the same.
When the unexpected happens, many investors feel like they should be doing something with their portfolios. Often, headlines and pundits stoke these sentiments with predictions of more doom and gloom. For the longterm investor, however, planning for what can happen is far more powerful than trying to predict what will happen.
While we cannot predict what the investing landscape will look like in the future, we can certainly lean on the historical data and trends within the investible dividend universe to make informed asset allocation decisions.
Here's our take on what happened in the markets in 2022, and how a long-term plan can help you regardless of what happens in 2023.
While uncharted territory may test our investment fortitude in the heat of the moment, it's important to have a set of principles to refer to in these uncomfortable times.
A historical analysis of US-domiciled equity funds has found no meaningful relationship between market volatility and outperformance by active managers. In other words, traditional active investments may give you more concern than comfort during market uncertainty.