Investing

‘Tis the season for year-end mutual fund distributions. A quick review of how these work can help those who keep a close eye on their stockings from being caught by surprise.

Financial pundits are busy offering promises of how next Tuesday’s Presidential election will impact markets. The truth is, no one knows exactly how the result will affect portfolios. Fortunately, long-term investors shouldn’t be too worried.

If we declared September 30th the end of 2016, the return of a typical Vista portfolio (65% stocks, 35% bonds) would be close to its long-term average of 8.8%. An average year may not sound like news until you realize how rarely it has occurred historically. 

Anyone who’s purchased a car knows the party most prepared to walk away from the deal has the advantage. It is the motivated buyer, or seller, who is most often forced to make the biggest concession. It’s no different in investing.

Index funds turned 40 last week. Not everyone, however, is in a celebratory mood.