Special guest, CFP® Matt Balderston sits down with Al Clopine to discuss the S&P 500 and common investing mistakes that should be avoided.
0:35 “Chasing the hot trend, putting all your eggs in one basket, is definitely not a good idea”
0:58 “This year is going to be particularly dangerous because the S&P500 was one of the top asset classes of all of them, and it’s the one we see every single night on the news, and people want to jump in on that.
1:11 “Tracking bias is when you want to be in the index that you track most frequently”
2:17 “If you actually go back and look over the last 20 years, the US has beaten the broad international indexes ten times and international has beaten the US ten times, so it’s a 50-50 coin flip”
2:36 “So why jump into something hot when next year it could be the worst”
3:00 “Just go back to the year 2000 to find out why you don’t jump into something like that because from 2000-2009, people have heard of the term “Lost Decade,” that’s because the S&P 500 actually lost 10% during that ten years”
