Volatility is an unavoidable part of investing. One thing we know for sure with our investments is that nothing is static.
The amount of volatility experienced is the result of portfolio positioning, which can range, at a very basic level, from very aggressive to very conservative. The more aggressive you invest the more volatility you’ll experience over time and vice versa.
My question to you, today, is “Do you know how much volatility you can afford before you must reduce your spending or adjust other financial goals?”
If you, or your advisor, don’t know the answer to this question then how can you/he/she possibly know how to invest your portfolio? Continue reading “How Much Volatility Before Your Financial Goals Are Impacted?”
The stock market has enjoyed a nice rally since mid-October so I figured it was a good time to see how things stand now.
In this commentary I’ll review:
- Brief technical update as the market is trading near a key level
- Price/Sales ratio and implication for future returns
- Updated Matrix of Returns
Continue reading “Technicals and Valuation Update”
“I would not be surprised to see inflation peak at around the current 8.5% level and begin rolling over in the latter part of the year.” – Ken Melotte, June 2022
There has been a lot of focus on inflation and interest rates lately, understandably. But I’m not sure how well people generally understand the mechanics of what’s happening, why, implications, etc… so figured I’d briefly address it.
The Federal Reserve (“The Fed”) controls/influences a couple critically important things: (1) the price of money and (2) the quantity of money. Continue reading “Inflation, Interest Rates, the Fed…What Does It All Mean?”
Bonds and stocks (along with real estate, commodities, etc…) are inherently volatile. Therefore, the value of portfolios that hold these securities will also be volatile.
Having said that, investors must be willing to suffer through short-term volatility if they are to achieve long-term portfolio growth. Continue reading “Return Ranges for Stocks, Bonds and Blended Portfolios”