Historically, value stocks have outperformed growth stocks in the US, though recently that hasn't been the case. While disappointing periods emerge from time to time, the principle that lower relative prices lead to higher expected returns remains the same. Logic and history argue for a steadfast commitment to value stocks, as the data covering nearly a century illustrates. Click here to view this illustration.
We believe that those who invest for the long-term are best served by staying in their seats during times of extraordinary market turbulence. Emotional and anxiety driven efforts to get out of the market when times are bad and get back in the market when times are better often lead to costly results.
To help illustrate this point, we have attached a piece provided by Dimensional Fund Advisors entitled “Recent Market Volatility” (click here). The piece graphically displays the market (as defined by the Russell 3000) during the 41-year period from 1979 thru 2019. We note that significant market volatility occurred throughout the period and that substantial intra-year losses were experienced in all but 7 years. However, “despite substantial intra-year drops, calendar year returns were positive in 34 years out of the 41 examined.” As such, one might observe that trying to make course corrections in advance of unpredictable yearly market swings is more a matter of luck than of skill.
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Congratulations to our own Devin Watts who recently completed and passed his Certified Financial Planning course and board exam leading to the sought-after CFP designation. As a result, Devin's role will continue to be expanded, having more direct client involvement as he continues to develop as a Financial Advisor.
Devin became an intern at Portfolio Advisors in 2016 after meeting with Portfolio Advisors management staff attending a job fair at California State University, Fresno. He became a permanent member of our team in 2018. Devin, a Craig School of Education graduate in 2018, was wed to his wife Hannah in 2017.
March 17, 2020
Yep. We’re officially in a “bear market” and you are wondering what you should do next. In most cases, the answer is nothing at all. A bear market, defined as a decline of more than 20% from its previous high, occurs with some regularity and has occurred approximately once in every five years since WWII.
...Due to concerns over the current health crisis we are encouraging alternatives to face to face meetings. In doing so, we are now conducting client meetings on the phone using screen sharing and video conferencing software (Zoom) where possible.
In addition to the above, we are reducing in-office staff to essential personnel with most of our staff working remotely. As such, all staff members have been assigned a direct phone number where they can be reached during normal business hours. Additionally, all staff members will remain available via email and will check their messages regularly. We do not anticipate interruptions to our normal work flow or our ability to serve you.
...Portfolio Advisors, Inc. will be closed for the following 2020 holidays on the dates listed below:
With each office closure we will be back the following business day during normal business hours.
...Legislation passed by the House of Representatives on May 23rd would dramatically change current IRA tax law. The bill, entitled the “SECURE Act", would change the age at which one must begin taking IRA distributions. It would also change distribution requirements for IRAs inherited by children or other non-spousal heirs. The bill passed with wide bipartisan support in a vote of 472-3.
Under current IRA law, one must begin taking their required minimum distributions at age 70 ½. The "SECURE Act" would allow IRA owners to delay taking their required minimum distributions until age 72. This change would allow IRA owners to benefit from the advantage of tax deferral over a longer period of time. Most will view this as a positive change.
...1. You’re financially ready.
The most common question we field from our clients is, “How much do I need to retire?” While there’s no magic number to hit, a few key checkpoints are:
...Portfolio Advisors, Inc. will be closed for the following 2019 holidays on the dates listed below:
With each office closure we will be back the following business day during normal business hours.
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China Financial Contagion Fears Come And Go In A Few Days
Fears of a China financial contagion infecting the global economy caused the U.S. stock market to plunge on Monday, but
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