Risk and Return Go Hand in Hand
While avoiding most risks helps keep us safe in everyday life, risk in our financial lives deserves special consideration. To invest wisely, we must accept that risk and return go hand in hand.
While avoiding most risks helps keep us safe in everyday life, risk in our financial lives deserves special consideration. To invest wisely, we must accept that risk and return go hand in hand.
Yale University boasts one of the country’s largest and best-performing university endowments. Over the past 20 years it has increased nearly 14% per year compared to the 9% average for all college and university endowments. Should all individual investors follow Yale’s example?
Recently, Federal Reserve officials announced they anticipate raising short-term interest rates later this year. This news is likely to renew fears for bond investors, as bond prices move in the opposite direction of interest rates.
Stocks in the U.S. have marched higher for more than six years now, making this one of the longest “bull markets” in history.
Every year, part of a diversified portfolio is guaranteed to underperform. Indeed, periods of pain and regret are the norm when a portfolio is properly diversified.