10 Ways To Not Sweat The Small Stuff (With Investing)

If you pay attention to the news, you can’t help but hear about how volatility has increased recently.  Overall, market temperatures have been so mild for so long, many newer investors have yet to weather a perfect market storm. Even if you have, you may have forgotten how challenging those times can be.

This worries us. Experience and evidence alike show us how severely bear markets test investor resolve.  We’ve also seen how damaging it can be to act on rash fear rather than rational resolve during market downturns.

 

Let’s be clear – we’re not saying that we think markets are about to go south.  But we do think that investors should be as informed and educated as possible.  So just as we prepare for other emergencies in life, here are 10 timely actions you can take when financial markets are tanking … and, frankly, even when they’re not. > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management

Reminder: Headlines Are Framed to Frighten – Not Enlighten

If we’ve been doing our job as your fiduciary advisor, you might already be able to guess what our take is on the current market news: Unless your personal goals have changed, stay the course according to your personal plan.

Still, it never hurts to repeat this advice during periodic market downturns. We understand that thinking about scary markets isn’t the same as experiencing them.

 

So, what’s going on? Why have stock prices suddenly become volatile after such a long, lazy lull, with no obvious calamity to have set off the alarms?  While we could point out fears of inflation, interest rate movements, and other potential reasons, we can’t (and no one can) know for sure what exactly moves markets on any given day, and this does not inform us of what will happen next. > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management

Your Retirement Plan Doesn’t Care About January

Have you heard of the “January Indicator” or “January Barometer?” This theory suggests that the price movement of the S&P 500 during the month of January may signal whether that index will rise or fall during the remainder of the year. In other words, if the return of the S&P 500 in January is negative, this would supposedly foreshadow a fall for the stock market for the remainder of the year, and vice versa if returns in January are positive.

 

I’ve heard this for years.  And I can remember early on in my career probably giving it too much attention.  After all, the financial news loves soundbites, and this was one that could grab viewer’s attention as we wonder about the upcoming year.  But what does the evidence show us? Have past Januarys’ S&P 500 returns been a reliable indicator for what the rest of the year has in store?  More importantly, should we care or worry about it? > SEE MORE

Waypoint Wealth Management

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Understanding ‘Average’ Returns

The US stock market has delivered an average annual return of around 10% since 1926.[1] But short-term results may 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 the stock market’s annual returns actually aligned with its long-term average? > SEE MORE

Waypoint Wealth Management

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Our Brain And Our Behavior, Part Three

Do you ever do something based on a recent experience, even though you know it might not be the best choice? Or do you ever think to yourself “you know, I’m a better driver than most”?  How about watching the market’s movements and subtly measuring your diversified portfolio’s recent returns against a very narrow comparison such as the general market? If you’re like most of us and answered yes to any of these, we’re going to explore how these behaviors can potentially take us off track when it comes to our finances.

 

This is the final article in our three-part series, where we’ve been exploring the most common ways that our brains can be wired to help us in life—but also can hurt us as investors.  > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management