The US stock markets are still feeling jittery this week, although we are seeing some stabilization in the International Markets, something that rarely gets headline coverage here in the US. The media bathes us in fear inducing coverage when we experience negative returns, but let’s step back from that a bit and think about what is really happening when markets turn downwards. If people are selling, who are they selling to? There must be a buyer on the other side of the sale, or it would not be a recorded transaction at all. What has to take place in…
Summit Blog
What, Exactly, Am I Invested In?
The stock markets were especially volatile last week. Normally volatile would refer to something going up and down, but when used in the context of the stock markets, we tend to only think about negative returns. I have written before about why holding the course and not making emotionally based decisions is best for anyone’s long term financial success, and I could do that here too. But, during a conversation with a client last week, it occurred to me that it might be better to more clearly explain exactly what our clients are invested in, and why “the markets” are…
INCREASING HAPPINESS IS A MATTER OF INTENTION
For many years, the prevailing theory was that individuals have a genetically determined happiness set point. In other words, scientists believed that each person could temporarily experience more happiness (depending on circumstances, relationships, and life events), but would then slide back to his or her “pre-programmed” set point. In fact, less than two decades ago, one researcher was quoted as saying, “It may be that trying to be happier is as futile as trying to be taller.” However, current research in the field of Positive Psychology indicates that people can become happier and the change can be long-term. …
Should You Only Invest in the US Market?
The front cover of Wall Street Journal showcased the news, “Propelled by Tech Stocks, Nasdaq Tops 8000 for the First Time”, followed by “Nasdaq Soars Past 8000 to Record” in even bigger print on the front of the Business & Finance section of the August 28, 2018 edition. To be sure, the US stock markets have been hot in recent years, despite what many have expected to happen. This is a great thing, but it may cause some to question the philosophy of global investing. Although non-US stock markets have been mostly positive for the last 12 months, they have…
Dimensional Fund Advisors – Tuning out the Noise
We are constantly inundated with headlines and noise that feed our instincts to react. In reality, a lot of the media voices we hear have little meaning for long term investors, and reacting to headlines can be the worst of moves for your long term financial success. The following is a short video clip produced by our fund family of choice, Dimensional Fund Advisors, highlighting the need to tune out the noise, and stay on track with a disciplined and informed investment philosophy.
