People Love Rules of Thumb

People Love Rules of Thumb

Sometimes, mental shortcuts are helpful. Other times they are not. When it comes to investing, seasonal shortcuts are not uncommon. In fact, January boasts two: The January Effect explains why U.S. smaller company stocks tend to outperform the market in January. The...
Like Traversing an Icy Stream

Like Traversing an Icy Stream

Investing during the month of December was like traversing an icy mountain stream. It delivered a staggering shock to the senses that triggered the instinct to, “Get Out!” When it comes to investing, that instinct is called loss aversion. For many people avoiding a...
Hold On to Your Hats!

Hold On to Your Hats!

Recently, stocks have delivered a wild ride. During Thanksgiving week, U.S. stock markets took investor uncertainty on the chin, suffering a 3.8 percent drop, which was the worst performance in eight months. Then, last week, stocks reversed course. The Standard &...
Remember: Volatility is Normal

Remember: Volatility is Normal

Major U.S. stock market indices climbed into record territory during August. They gave back some gains last week. Peter Wells of Financial Times explained: “Speculation about a fresh round of tariffs on Chinese imports from the Trump administration weighed on U.S....
Keep Your Eyes on the Horizon

Keep Your Eyes on the Horizon

Motion sickness happens when your body receives conflicting signals from your eyes, ears, and other body parts. One way to manage the anxiety and queasiness that accompany the condition is by keeping your eyes on the horizon. The motion of the stock markets has been...
The World Remains Full of Opportunities and Challenges

The World Remains Full of Opportunities and Challenges

Although we’ve seen global markets moving in tandem in recent years, Sara Potter of FactSet pointed out, “…we’re starting to see the end of the synchronized global growth that has prevailed over the last two years. While the U.S. economy remains strong, growth in...