Recent stock market turbulence has again captured investors’ attention. But market volatility is the rule, not the exception. Capturing these returns requires discipline and patience.
In a widely publicized bet with hedge fund manager Ted Seides, Warren Buffett wagered $1 million in 2008 that Vanguard’s S&P 500 Index Fund would deliver better returns over a ten-year period than hedge funds handpicked by Seides. The results of Buffett’s bet are in, and guess who’s doing the happy dance?
“This could be the year,” predicted Barron’s in January, “the movie runs backward. Inflation awakens. Bond yields reboot. Stocks stumble. Active management rules.” Or maybe not.
‘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.
The evidence is clear – to maximize the long-term investment outcome of your portfolio, it’s best to get fully invested immediately. For those who just can’t bring themselves to plunge, our research suggests there’s an optimal way to wade.
Q: Will Rising Interest Rates Hurt Stock Prices?