It’s hard to think all the way back to January 2016, but the year began with a bit of a shock when US stocks had their worst start in history. Then came the Brexit vote in June, when non-US Stocks dropped approximately 7% over a three week period. And then came the US Presidential election, when US stocks dropped approximately 5% in the weeks leading up to the election.
But by the end of the year, those investors who stayed the course saw positive returns across the board.
Now that the election is behind us, it is safe to say that Trump’s victory was unexpected. Just like the Brexit vote back in June, his victory raised more questions than it answered. It has created an atmosphere of uncertainty and markets typically respond to uncertainty with heighted volatility. So what does this mean for…
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In a previous article, we discussed the idea that a properly diversified portfolio provides investors with an effective tool for reducing risk and volatility, without necessarily giving up a return. Below is an example of how diversification across asset classes really works. Let’s compare two blended index portfolios for the 20 year period ending December 31,…
DetailsAmong the most important tools available to investors is diversification. Diversification allows an investor to reduce investment risks while potentially improving investment returns. But even though the benefits of diversification have been well-documented and widely explained by some 60 years of academic research, the concept is at first glance, counterintuitive. After all, why in the…
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