Groundhog Day and the January Barometer
It would be unwise to conclude the market’s performance in January tells us anything about returns for the rest of the year.
It would be unwise to conclude the market’s performance in January tells us anything about returns for the rest of the year.
In the past few weeks, stock markets around the world have fallen 10% or more. Confronted with declining portfolio values, some investors can lose perspective. We thought this would be a good time to share historical data we believe helps put recent events in a more objective light.
A new year means the financial media’s “Where to Invest Now” guides are, once again, on full display. This year’s batch offers “Top Picks from Top Pros” so readers may “Make More Money in 2016.” Don’t believe what you read: Market forecasts aren’t promoted to protect and grow your piggy bank.
The lackluster performance of stocks this year has many investors fixated on whether a market correction may be just around the corner. How slowing global growth, higher interest rates or the outcome of the U.S. presidential election will impact markets has captivated investors around the world.
It’s been fifteen years since the Oscar-nominated film O Brother, Where Art Thou? was released. Loosely based on Homer’s Odyssey, the satirical tale follows three escaped convicts as they run from the law in search of buried treasure.
According to two academic papers we recently reviewed, the answer is yes. Researchers found that high-I.Q. investors not only invested more heavily in stocks than their lower I.Q. counterparts, but also held more diversified portfolios and favored low-cost funds.