Being fearful about future investment performance is natural, but investors need to remember that fear is a thief. It steals peace of mind. It steals money in the form of lost future growth of wealth. And it steals happiness as the fearful investor constantly worries about things that seem scary but that in fact are not. We can learn to…
Price discovery should be considered the central function in any marketplace whether it be a financial exchange or the local farmer's market. The market itself brings potential buyers and sellers together, and a marketplace allows all parties to interact and by doing so a consensus price is established.
Renowned author F. Scott Fitzgerald was unknown for many years, but his following slowly grew due to one committed fan. While most people try to attract as many social media followers as possible, we can still achieve success if we attract a small group of truly interested and committed disciples to help spread the word.
Business and consumer trends are evolving faster than ever, and what was once a thriving business even a few short years ago can suddenly look like a plodding dinosaur. Many companies have rapidly expanded their stable of products over the past decade, and still command loyalty from long-time customers. But it is difficult to do.
An investor may wonder if it is worth the cost to work with a financial advisor. The simple answer is that a professional provides a level of expertise and guidance in many different areas of long-term wealth management and estate planning, and the resulting peace of mind can be well worth the cost.
Investing the stock market can be a volatile journey filled with many ups and downs, but investors should not confuse volatility with risk. They are not the same. While the stock market may see periodic increases in volatility and sharp up or down movements, the market does not become riskier with a higher level of volatility.
Investing in the financial markets can be a volatile journey. However, if an investor has a comprehensive wealth plan and the courage to stick with the plan through all the ups and downs that come his way, then he does not have to prove how smart he is by trying to time the market. He is already smart.
Your employer-sponsored 401k plan can be a powerful way to save money for retirement. The most important principles for success are to start early, contribute consistently to the plan, and think long-term about your investment choices. Saving consistently will allow you to sleep well at night, knowing that your financial future is secure.
While in decades past a public company's primary way to return profits to shareholders was to pay funds out as dividends, these days a widely used technique to return cash to shareholders in an efficient manner is through a share repurchase. A company reduces the number of shares outstanding, thereby making each remaining share more valuable.
For most investors, selling stock short is a bad idea. Buying stock to hold for the long-term is investing, but selling stock short that you may be forced to pay a much higher price for later on to replace the borrowed shares is gambling, and is very risky. Historically, stock prices usually rise over time, so it is best to…
Saving money rather than spending it is surely the best way to grow wealth over time, whether you are a sixteen-year-old new-adult who has just secured a first job, or a sixty-year-old factory employee who has been working for forty years. You can only invest money and watch it grow in the future if you save some money in addition…
NASA astronauts perform missions even in the face of great risk, as they they have learned to understand that risk and how to manage it. Wealth management clients also need to understand the true nature of the risk of their diversified portfolio of investments, and by learning to live with a comfortable level of risk they can grow wealth over…
The S&P 500 is a diversified index of large companies, and is a proxy for the stock market. Many stock market investors who want to gain exposure to investing in large United States stocks (but do not have the time or expertise to purchase individual stocks) can invest in the broad stock market conveniently by buying shares of an S&P…
