Where Do We (Or Can We) Go From Here?

From March 2009 through September 2018 — a period encompassing almost 10 years and the aftermath of the Great Financial Crisis — the world’s stock markets performed exceedingly well. Over this period, the global stock market was up 14.3 percent per year while the S&P 500 was up 17.9 percent per year. This means that $1 invested in global stocks grew to $3.60 while $1 invested in the S&P 500 was worth $4.84. Other than the first few years of this period, stock market volatility was also well below its long-term average. This changed swiftly in 2018’s fourth quarter, with global stocks down 12.7 percent and the S&P 500 down 13.5 percent. These bleak returns came with a corresponding uptick in volatility; the quarter saw numerous days with stocks either rising or falling by 2 percent or more.

With such a dramatic reversal, we wanted to revisit the stock market’s longer-term behavior, so we can put more perspective around its recent movements, and also reinforce longer-term investment principles that we continue to believe represent the best course of action, or more accurately inaction. > SEE MORE

Waypoint Wealth Management

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You (Get To) Choose Which Game To Play

We hope that you and yours are doing well as we swing into the holiday season. In a world both wondrous and sometimes weird, you may have mixed emotions about the days, months, and the new year ahead of us – an intermingling of fear and optimism, hope and hesitation, possibly even sorrow and joy.  And you may have noticed that the markets have been swinging through every one of these same emotions as well, in real, seemingly manic time.

For capital markets, that’s perfectly alright. In fact, it’s precisely what they’re supposed to be doing. Out of the seeming chaos, an efficient method arises for setting and re-setting relatively fair pricing. It’s exactly how tens of millions of trades occur every day, at lightning speed, around the world. If prices instead grew sluggish or stagnant, so too would our ability to make money in the markets.

That said, while apparent mayhem may make perfect sense for moving markets, it’s not how you need to live when thinking about your portfolio. As an individual investor, you get to choose which game to play. > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management

Many Eggs; Many Baskets: The Importance of Global Diversification

As we wrote about back in April (10 Ways To Not Sweat The Small Stuff With Investing), market volatility has once again picked up.  If you’re like most, this is a news story that will take your attention from time to time.  So with that said, we felt like it was a good time to underscore the perennial value of building – and maintaining – a globally diversified investment portfolio for achieving your greatest financial goals.

 

 

Global diversification is such a powerful antacid for when (not if!) we experience market turbulence, it’s why we’ve long recommended spreading your market risks:

  • According to your personal goals and risk tolerances
  • Between stock and bond markets
  • Among evidence-based sources of expected long-term returns
  • Around the world

 

In short, broad, global diversification never goes out of style. > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management

What Is The “Yield Curve”?

The yield curve is flattening (or growing steeper)! … Yield curve spreads are widening (or narrowing)! … The yield curve has inverted (or normalized)!

Headline-grabbing yield curve commentary somehow sounds important, doesn’t it? But what is a “yield curve” to begin with, and what does it have to do with you and your investments?

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Waypoint Wealth Management

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Trade Troubles?

You may have heard or read the news of an escalating trade war between the United States and China, which has dominated headlines recently as both countries formally imposed substantial tariffs on one another. In response to the Trump administration’s 25 percent tariff on $34 billion worth of Chinese goods (largely industrial and technology products), the Chinese government levied tariffs of equal size on certain U.S. goods (largely agricultural products). The U.S. government is expected to launch a second round of tariffs on China, worth another $16 billion, in the next few weeks. Then on July 11, the White House announced it is preparing yet another wave of tariffs targeting China to go into effect sometime after August 30.

 

 

This most recent trade conflict follows tariffs of up to 25 percent that the Trump administration imposed in June on steel and aluminum imports from Canada, Mexico and the European Union, who then countered with levies on U.S. exports ranging from maple syrup to Harley-Davidson motorcycles.

 

How do these decisions affect you, and is there anything we should be doing about it when it comes to your investments? > SEE MORE

Waypoint Wealth Management

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Waypoint Wealth Management