ACTION POINT
READ AGAINST THE GODS: THE REMARKABLE STORY OF RISK
READ AGAINST THE GODS: THE REMARKABLE STORY OF RISK
Against the Gods: The Remarkable Story of Risk
AVOID MARKET TIMING
AVOID MARKET TIMING
- Historical evidence shows market timing leads to significantly lower returns than buy and hold strategy
- Market timing also leads to increased volatility
- “…the volatility of investor returns is higher than the corresponding volatility in nearly all specifications.”
- “Specifications’’ considered: individual stocks, stock mutual funds and stock indexes in U.S. and major international markets
- Increase in volatility with trading is significant: 10-75% higher.
Source: “The Volatility of Stock Investor Returns” Ilia D. Dichev, Emory University, Xin Zheng, University of British Columbia
TAKE SOME RISK OFF THE TABLE
TAKE SOME RISK OFF THE TABLE
- Market Conditions Flashing Caution
- Winning By Losing Less: A Tried And True Approach
- Trim Some Of Your Most Elevated Holdings
CONSIDER ADDING SOME DIRECT CHINESE EXPOSURE
CONSIDER ADDING SOME DIRECT CHINESE EXPOSURE TO YOUR PORTFOLIO THROUGH AN ACTIVELY MANAGED CHINA FUND
Combined Chinese Stock Markets Second Largest in World
China’s A-share market:
- Chinese mainland-based companies trading on the Shanghai and Shenzhen exchanges
- Gradually opening up to foreign investors
More A-shares being included in major indexes including MSCI Emerging Markets indexes
Morningstar’s Gold and Silver Medalist China Region Funds
- Matthews China Investor MCHFX – Gold
- Matthews China Dividend Investor MCDFX – Silver
- Matthews China Small Companies MCSMX – Silver
GIVE YOUR FINANCIAL PLAN A COVID ANALYSIS
GIVE YOUR FINANCIAL PLAN A COVID ANALYSIS
- WHAT PANDEMIC CHANGES CAN YOU APPLY TO YOUR LIFESTYLE?
- WHICH ACTIVITIES REALLY MATTERED, WHICH DIDN’T?
- WHICH EXPENDITURES WERE CRITICAL, WHICH WERE SECONDARY?
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