Over the holidays, I sat at our kitchen table after breakfast, drinking coffee and reading the paper while my five-year-old rolled, sculpted, and ultimately smashed flat the hot pink Play-Doh that Santa so generously left in her stocking Christmas morning. As her wonderfully messy creative expression came out through this oh-so familiar medium, I commented to her that it would be easy to read her palm with all the lines and creases of her hands so brightly illuminated. Not surprisingly, her ... [Continue Reading]
Articles and resources related to Market Volatility.
During our recent client event presentation at the Minnesota History Center, we discussed the importance of asking good questions. In a world in which most of us carry around small computers in our pockets that are capable of tapping into a seemingly infinite pool of data and information that is the internet, the value of the answers we find corresponds directly with the quality of the questions we ask. When exploring answers for many commonly asked financial questions, the risk that one faces ... [Continue Reading]
Memories of the global financial crisis still weigh heavily on the minds of many investors. From October 2007 to March of 2009, the S&P 500 lost 55%, creating the greatest market downturn since the Great Depression. For investors who maintained a disciplined approach however, this memory is far less painful, as the S&P 500 has not only fully recovered its losses, but has produced nearly 100% gains. Today's recommended reading article, "You Just Doubled Your Money if You Invested at the ... [Continue Reading]
Last week, Wall Street’s so-called 'fear indicator,' the VIX (Chicago Board Options Exchange Volatility Index), set a new low since just prior to the 2008 financial crisis. The only time in the past two decades that this indicator was so low was in 2007, right before markets started to decline. Many are wondering aloud if this means that the market has again become too complacent, and that a recession and subsequent market decline are just around the corner. This is the subject of today’s ... [Continue Reading]
Our emotions affect our investment decision making in countless ways, which can have a very real impact on our long-term financial goals. One of the most powerful ways our emotions affect us is through our appetite for risk. When markets are calm and returns have been positive, our brain tells us that it’s okay to take on more risk in hopes of achieving higher rates of returns. The opposite is true as well. When markets become volatile and returns have been negative, our brain tells us to take ... [Continue Reading]