INVESTING

Apparently, Santa has decided we are all on the naughty list for 2018.  This time of year, we’re usually discussing the upcoming “Santa Clause” rally.  Unfortunately, that hasn’t been the case so far this year. 

The following video is one of the best educational presentations we’ve seen. The presenter explains how our brain directs us to avoid making decisions or taking actions that are actually in our best interest and how it feels awkward to fight these signals, even though we should. I recommend watching it.

After a period of relative calm in the markets, in recent weeks the increase in volatility in the stock market has resulted in renewed anxiety for many investors.

This video highlights the importance of staying focused when markets are volatile.

Uncertainty, Though Unnerving, is Certainly Something we can Count On

We’ve just entered spring and can see the grass starting to green and the trees budding.

Spring symbolizes renewal; new life as evidenced by the vegetation emerging from the ground. However, spring also offers some of the most uncertain weather; ranging from sunny days in the 70s, to cold and rainy days in the 40s and even a chance of snow.

Currently, the S&P 500 is hitting new record highs. What is truly amazing though is the fact that in 2017 there has never been a day when the index closed below its starting value on 12/31/2016 according to a report from the Bespoke Investment Group. The same report noted that when the market is up from 10% to 20% at this point, which 2017 qualifies, the median return for the rest of the year has been 2.50%, with gains over 80% of the time.

It has been a rough couple of weeks for many Americans. First, it was Hurricane Harvey and the devastating flooding it brought to Texas and Louisiana. Next, Hurricane Irma hit the Caribbean, Florida and some of its neighboring states. Regarding these hurricanes, we have clients, relatives and professionals we work with in these locations. Thankfully all are safe and sound, but many are dealing with some damage, flooding and repairs.

Over the course of the past few months at Integrity Advisory, a consistent theme has prevailed in my interactions with many different types of people. Although nearly everyone is working and investing in an effort to accumulate wealth over time and live off that wealth in their retirement, humans generally have a very difficult time looking past the short-term.  

Below are summaries of some basic principles you should understand when evaluating an investment opportunity or making an investment decision. Rest assured, this is not rocket science. In fact, you'll see that the most important principle on which to base your investment education is simply good common sense. You've decided to start investing.