Science tells us that humans generally follow three pathways when faced with a stressful situation: fight, flight, or freeze. This week, the world materially changed for the people of Ukraine, and investors everywhere are digesting this information. Some are fighting to win and taking action by selling one asset in favor of buying another fund. Others are fleeing the global market, selling their assets and waiting until a period of calm before reinvesting. There are many more who are ... [Continue Reading]
Articles and resources related to Diversification.
Back in November, when the weather was warmer and the world was a bit more open, I hosted a gathering in my backyard to celebrate the 40th birthdays of two of my closest friends. As a part of the evening’s festivities, we all gathered around the roaring fires and each guest took a turn sharing a nugget of wisdom or lesson learned over the course of their ever-changing life. Some were funny enough to bring people to the edge of tears, while others were heartfelt and emotional enough to take some ... [Continue Reading]
Investors are prone to recency bias, a key aspect of behavioral finance that favors recent events over historic ones, and as an example, can result in focusing on companies that have generated the best returns in recent years as opposed to taking a longer view. What's important to remember is that, over time, each area of the market has its moment in the sun; internet stocks in the late 90s, commodities and real estate in the early 2000s, alternative investment strategies during the global ... [Continue Reading]
Diversification is a critical component of CCM's investment strategy. In this video, Investing's Free Lunch, Adam Hoffmann, CFP®, AIF® discusses why intentionally giving up some return to reduce risk can result in a higher-yielding portfolio in the long-run. NOTE: The information provided in this video is intended for clients of Carlson Capital Management. We recommend that individuals consult with a professional advisor familiar with their particular situation for advice ... [Continue Reading]
Markets, Values, and Expectations Are in a Much Different Place Now On this day one year ago, the S&P 500 closed at 2,237. 1 Investor pessimism about the ramifications of a global pandemic were at a peak, and it was becoming clearer that this health crisis was going to turn into a severe economic downturn. The S&P 500 closed that day down 33.9% from its all-time high of 3,386, set just a few weeks earlier on February 19. 2 The intensity of this market ... [Continue Reading]