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The Uncommon Average – Second Quarter 2019

The U.S. stock market has delivered an average annual return of around 10% since 1926. But short-term results generally vary, and in any given period stock returns can be positive, negative, or flat. When setting expectations, it’s helpful to see the range of outcomes experienced by investors historically. For example, how often have…

Blink Moments – First Quarter 2019

After a turbulent end to 2018 sent stock indices around the globe into bear-market territory, equities staged a big recovery in the first quarter of 2019. For the quarter, the S&P 500 index gained 13.65% and was within a few percentage points of its record high. The Russell 2000 small stock index gained even more…

Why Should You Diversify? – Fourth Quarter 2018

As 2019 begins, and with U.S. stocks outperforming non-U.S. 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…

Where’s the Value? – Third Quarter 2018

From 1928–2017 the value premium in the U.S. had a positive annualized return of approximately 3.5%. In seven of the last 10 calendar years, however, the value premium in the U.S. has been negative. This has prompted some investors to wonder if such an extended period of underperformance may be cause for…

E + R = O, a Formula for Success – Second Quarter 2018

Combining an enduring investment philosophy with a simple formula that helps maintain investment discipline can increase the odds of having a positive financial experience. “The important thing about an investment philosophy is that you have one you can stick with.” David Booth Founder and Executive Chairman…

Sailing with the Tides – First Quarter 2018

Embarking on a financial plan is like sailing around the world. The voyage won’t always go according to plan, and there’ll be rough seas. But the odds of reaching your destination increase greatly if you are prepared, flexible, patient, and well-advised. A mistake many inexperienced sailors make is not having a…

Recent Market Correction – Fourth Quarter 2017

After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors. From January 27 to February 8, the U.S. market (as measured by the S&P 500 Index) fell more than 10%, marking the first stock…

Key Questions for the Long-Term Investor – Third Quarter 2017

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…

Stock Investing at All-Time Highs – Second Quarter 2017

As stock markets, once again, continue to hit all-time highs, investors take this news not with celebration, but with trepidation. Modern stock markets have been worrying investors with new highs since they were created several centuries ago. For example, in 1955, Benjamin Graham, the great…

The Uncertainty Paradox – First Quarter 2017

Doubt is not a pleasant condition, but certainty is an absurd one. —Voltaire “The market hates uncertainty” has been a common enough saying in recent years, but how logical is it? There are many different aspects to uncertainty, some that can be measured and some that cannot…