Aug

15

Investing or Gambling

August 15, 2012 | Leave a Comment


This week’s video spot, Investing or Gambling, is timely when we consider the end of the 11th month of 2010. When looking at year-to-date gains, Small Cap is in the 17% range, Small Value is around 15% and even Large Cap is in the 7% – 8% range. The only lagging asset class year to date is the EAFA (Europe, Australia and the Far East) index at negative 2%. I think this makes the case for why it is important to not chase the market and to prudently invest. We never know what asset class is going to be the winner or loser in a given year. For those of you receiving this that are not clients, active management and fees associated with your account may be affecting the returns that you’re getting this year. As a coaching point, whether you’re personally doing the trading in your accounts or the money manager who’s trading in and out of mutual funds and stocks, the trades are still happening and the associated costs are passed onto you. So once again, another weekly video to help keep us grounded and realize that it’s not rocket science. Investing is fairly simple if you apply certain principles; own equities, diversify, rebalance and make sure the time horizon is correct for your portfolio. Invest for the long term and enjoy this video.

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