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The stock market adage “Sell in May and go away” is based on the observation that the best-performing six-month rolling period historically occurs from November through April. During this time, average returns tend to outpace the subsequent six months (May to October). Investors are advised to sell their holdings in May, move into cash, and […]
Direct indexing gives investors the ability to mimic the performance of an index such as the S&P 500 by purchasing its underlying stocks to create a customized portfolio. Since you can’t invest directly in an index, most investors will buy an exchange-traded fund (ETF) or mutual fund to replicate its performance. When you own shares […]
“Inflation is raging. There might be a recession. Markets are volatile. An election is on the horizon. Several banks have failed. We might hit the debt ceiling. Russia is still invading Ukraine. China might invade Taiwan.” The list goes on and on, a litany of troubling headlines. It’s enough to keep you up at night. […]
As you may have heard, the collapse and takeover by the Federal Deposit Insurance Corporation (FDIC) of Silicon Valley Bank (SVB) and Signature Bank has driven the recent volatility and investor concern of “contagion” in financial markets. SVB, the 16th biggest bank in the US, had operated as a major funding source for Silicon Valley […]
Most investors hold bonds for safety, diversification, and income. In fact, you’ve probably read or been told that you should hold stocks for growth and bonds for safety. There is logic to that advice; bonds have historically been much less volatile than stocks and historically have provided ballast during stormy markets. That concept might leave […]
With the consumer price index at forty-year highs, this is a good time to take a look at what types of investments might make sense in an inflationary environment. Before diving in, though, it’s important to note that there are no foolproof methods to avoid short-term surprises. The bottom line is that if inflation readings […]
During bull markets, it’s relatively easy to adhere to the philosophy of buying and holding for the long-term, but when markets get rattled, it can be difficult to stay the course while your portfolio falls in value. This has been the case recently, as fears around inflation, war, pandemics, central bank policy, and recessions have […]
If you own bonds and you’re like most investors, you’re probably frightened by the idea that interest rates might keep going up. After all, everyone knows that higher rates are a disaster for bond owners. The thing is, though, that prevailing wisdom may not be correct. What are bond investors really afraid of? As a […]
To the individuals and families we serve, Given the spike in market volatility due to the COVID-19 pandemic, this seems like a good time to discuss how Pure Financial Advisors’ investment philosophy has been designed to facilitate efficient implementation for each and every one of our clients, even in the most extreme of market conditions. […]
Designing a portfolio that meets your needs can be a challenge. Not only do you need to select investments to meet your return objectives, but also manage how much risk you take. Also, you need to actually implement those decisions, select the most appropriate products or individual securities in accordance with your asset allocation, and […]
Diversification is an important strategy for any investor because it can help to reduce systematic risk or the risk of the overall market. We accept that risk by being invested in the market in general, but why take on additional types of risk when they can be reduced? Investment portfolio diversification allows us to reduce […]
Many established investors are familiar with the advantages of portfolio diversification, although those relatively new to investing may ask themselves, “What is portfolio diversification?” Like many things in life or in finance, portfolio diversification is easier to understand than to implement effectively. Investors often make mistakes that can prove costly and impede their long-term financial […]
Many investors diligently save a portion of their income over extended periods of time. They also put a significant amount of effort into deciding which investments are appropriate for their needs. They potentially watch programs in the financial media, subscribe to publications, chat with their friends at the water cooler, and maybe even hire the […]
All the investments you hold together make up your portfolio. This can include a variety of asset classes. Two individuals with different investment objectives are likely to have large differences in their portfolio – this isn’t all that surprising. Unexpectedly, people with similar investment objectives often have substantially different portfolios due to differences in style […]
Have you ever found yourself wondering, “What is asset allocation and how do I use it in my portfolio?” Well, first let’s start at the beginning. Common investing practices usually include stock picking and attempting to time the markets in order to drive returns. This method opens investors to unnecessary risk. Alternatively, decades of time-tested […]
