Category Archives: General

Want Big Returns? Risk is the Only Certainty

Jeff Holland - Want Big Returns? Risk is the Only Certainty

If you want to get excess returns in the market, expect volatility and price fluctuations. You cannot have one without the other.

The alternative is to buy a Treasury Bill or a money market fund; but if you want a higher rate of return, you have to be willing to accept more risk. Bull and Bear markets will cycle; and while it’s never comfortable when the market drops, just remember that the market is priced to provide investors with a return each and every day. Continue reading

The Uncommon Average

“I have found that the importance of having an investment philosophy—one that is robust and that you can stick with— cannot be overstated.”

—David Booth

The US stock market has delivered an average annual return of around 10% since 1926 (1). But short-term results may vary, and in any given period stock returns can be positive, negative, or flat. When setting expectations, it’s helpful to see the range of outcomes experienced by investors historically. For example, how often have the stock market’s annual returns actually aligned with its long-term average? Continue reading