Every investment decision has consequences; only the future will determine if it is a good decision. Due to the uncertainty of the markets and while many try to forecast the future, they have yet to achieve success consistently or reliably.
Constructing portfolios with less downside capture is critical to building long-term wealth, says this advisor and former NAPFA chair.
A prediction about an uncertain future is just an opinion and should not determine anyone’s investment decision. Many people learn this the hard way. Markets have always rewarded discipline – having an investment philosophy, a strategy to manage risk and sticking to it is the surest way to reap success when investing.
There seem there are two extremes when it comes to investing. Those investors panic the first minute we experience a down day. Others are not phased at all since, after all, the market always bounces right back.
We’ve always had concerns about so-called Emerging Market funds and have never included them in our portfolios. This blog covers some of the issues associated with EM funds and their performance and asks whether it justifies the risk. We also mention what we hold instead.
Reinsurance bonds also called Catastrophe bonds are a unique asset class, one whose performance has little relationship to the bond and stock market hence their unique value. Here we explain what reinsurance bonds are, how we can invest in them and what value they add to a diversified portfolio.