Investing can be stressful, however with financial science as a “north star” it becomes sustainable and palatable provided that one is optimistic and believes that on average, progress is made (albeit slowly at times).
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If you invest in global and diversified equity portfolios and expect to receive high returns, you have to expect there will be times of disappointment. The average return over time has been around 10% in globally diversified equity portfolios. Continue reading
Having an investment plan that you can stick with—through thick or thin—is very important. If you start to jump in and out, chasing recent performance, then your returns will suffer.
Volatility (price fluctuations), both up and down, are normal and inevitable. The challenge is to be able to live with the plan through good times and bad. Once you have a plan in place, stick with it. Continue reading
{Read in 1:50 minutes} Price fluctuations are a normal part of investing.
The stock market can go up any given year, but the price fluctuations within each day, week or month can go up or down. Long-term investors shouldn’t equate those granular ups and downs with overall risk in a portfolio. Risk is a permanent loss of capital.