Investing Principles

EXTEND YOUR INVESTMENT TIME HORIZON

EXTEND YOUR INVESTMENT TIME HORIZON

PROBABILITY OF A LOSS FOR THE S&P 500
(Rolling Price Returns, Jan 1930 – Jan 2021)

• 1 day investment = 46% chance of loss
• 1 year investment = 31% chance of loss
• 5 year investment = 19% chance of loss
• 10 year investment = 10% chance of loss

Source: Richard Bernstein Advisors “Insights” March 2021

Watch the related WEALTHTRACK episode.

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

Watch the related WEALTHTRACK episode.

PAY ATTENTION TO POLICY, NOT POLITICS

PAY ATTENTION TO POLICY, NOT POLITICS

Political drama doesn’t determine:

• • financial plan
  • portfolio direction
  • business climate

Policy can determine:

• Interest rates
• Taxes
• Rules and regulations

Watch the related WEALTHTRACK episode.