By Paul Ohanian, CFP® & Thomas Doellman, PhD Academics and industry professionals have known for some time that when people invest in the stock of publicly-traded companies, they tend to invest in companies from their home country. Known as the "home country bias," this behavioral bias is one of many that plague individuals' retirement investment portfolios. The reason? Diversification…or lack thereof! Importance of International Diversification Diversification aims to … [Read more...] about Just How Diversified is your Portfolio?
After logging strong returns in 2017, global equity markets delivered negative returns in US dollar terms in 2018. Common news stories in 2018 included reports on global economic growth, corporate earnings, record low unemployment in the US, the implementation of Brexit, US trade wars with China and other countries, and a flattening US Treasury yield curve. Global equity markets delivered positive returns through September, followed by a decline in the fourth quarter, resulting in a -4.4% return … [Read more...] about 2018 Market Review
As 2019 approaches, and with US stocks outperforming non-US stocks in recent years, some investors have again turned their attention towards the role that global diversification plays in their portfolios. For the five-year period ending October 31, 2018, the S&P 500 Index had an annualized return of 11.34% while the MSCI World ex USA Index returned 1.86%, and the MSCI Emerging Markets Index returned 0.78%. As US stocks have outperformed international and emerging markets stocks over the last … [Read more...] about Why Should You Diversify?
Focusing on what you can control can lead to a better investment experience. Whether you've been investing for decades or are just getting started, at some point on your investment journey you'll likely ask yourself some of the questions below. Trying to answer these questions may be intimidating, but know that you're not alone. Your financial advisor is here to help. While this is not intended to be an exhaustive list it will hopefully shed light on a few key principles, using data and … [Read more...] about Key Questions for the Long-Term Investor
You've lived through 90 days of financial headlines and speculation of what's to come. Enjoy a few minutes of thoughtful reflection with our Q2 2017 Market Review. This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. Our Market Review is updated quarterly and always available on our Home Page. … [Read more...] about Q2 2017 Market Review Posted
You've lived through 90 days of financial headlines and speculation of what's to come. Enjoy a few minutes of thoughtful reflection with our Q1 2017 Market Review. This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. Our Market Reviews are updated quarterly and always available on our Home Page. … [Read more...] about Q1 2017 Market Review Posted