Should I be investing in the markets if there is so much uncertainty?
It’s because of uncertainty that we have a positive premium when investing in stocks vs. relatively riskless assets.
It’s because of uncertainty that we have a positive premium when investing in stocks vs. relatively riskless assets.
By accepting that uncertainty is part of investing, you can avoid unnecessary anxiety.
A well-diversified portfolio can help investors reliably capture market returns, limit individual stock risk, and improve the ability to tilt toward segments of the market with higher expected returns.
The stock market tends to reward investors who can weather annual ups and downs and stay committed to a long-term plan.
The impact of missing just a few of the market’s best days can be profound. Staying invested and focused on the long term helps ensure that you’re in a position to capture what the market has to offer.
Negative performance of fixed income is frustrating, but not unprecedented. Short-term negative returns occur more frequently than you may realize. However, through a longer-term perspective, down periods don’t seem as daunting.