ACTION POINT
READ “COMMON SENSE”
READ
Common Sense: The Investor’s Guide to Equality, Opportunity, and Growth
“I recommend this book to anyone who cares about these things. It’s not just for investors.”
Howard Marks, Co-Founder of Oaktree Capital Management
DON’T TRY TO TIME THE MARKET!
DON’T TRY TO TIME THE MARKET!
S&P 500 Compound Annual Growth Rate
(Jan 1, 1995 – May 31, 2020)
- 7.8% if fully invested
- 5.9% if you miss 5 best
- 2.4% if you miss the 20 best trading days
- 0.6% if you miss the 30 best trading days
- -1% if you miss the 40 best trading days
- -2.5% if you miss the 50 best trading days
Source: Strategas Research Partners
OWN SOME SAFE HAVEN INVESTMENTS
OWN SOME SAFE HAVEN INVESTMENTS
- VOLATILITY ON THE UPSWING
- MORE FREQUENT MARKET DISLOCATIONS
- GROUP THINK DRIVEN BY ALGORITHMIC TRADING
STICK WITH YOUR INVESTMENT DISCIPLINE
STICK WITH YOUR INVESTMENT DISCIPLINE
- KNOW YOUR RISK TOLERANCE
- STAY WITH YOUR ASSET ALLOCATION
- REBALANCE WHEN IT GETS OUT OF WHACK
- BE DIVERSIFIED AMONG:
-
RISK ASSETS, LIKE STOCKS
-
SAFE ASSETS, LIKE SHORT-TERM TREASURIES
-
HEDGES AGAINST DISASTER, LIKE GOLD
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