Client Conversations

It’s natural to want to do something to protect our portfolios from loss. However, we need to view the current crises through the lens of history.

Investors acting out of fear or greed have tended to make bad decisions at inopportune times. Having a plan and sticking to it has tended to be better.

The herd is often wrong. From the tech boom to the so-called fear trade to the COVID-19 outbreak, following the herd would’ve led to suboptimal results.

Stock market indexes have tended to advance over long periods. If you believe the world will continue to improve, you should expect markets to trend upward.

It’s hard to always get the market entry point right, but long-term investors have often been rewarded for putting money to work.

The market comes with few guarantees. Investing in something simply because someone else recently made money in it often leads to a bad outcome.

Money can make money. Compounding is earning interest on interest already paid. For an investment portfolio, compounding is generating returns on returns.

Investing comes with volatility. Historically, to reap market returns, investors have had to be willing to ride out the inevitable down markets.

Once you spend your money, you can’t use it for something else. When considering a purchase, recognize that you’re giving up the chance for that money to grow.

Money can grow through investing. Delaying an investment is losing an opportunity for that money to grow.

Compound interest can work against you. A credit card purchase is a loan with interest and penalties that can add up if not paid back in full.

Start investing at a young age. History suggests that the longer you have your money invested, the less you’ll need to contribute later.

Long periods of policy uncertainty can make markets more volatile, but past shutdowns have generally resolved quickly with little market impact.

New tariffs on foreign goods likely wouldn’t spark lasting inflation, but they could dampen economic activity.

Markets have performed well under single-party rule — including under the Republican party. Those who remained invested have often reaped the rewards.

A connection exists between the stock market and recessions, but predicting market performance during the next recession can be difficult.

Military conflicts will test investors’ resolve to stick to their investment plan. But history suggests they haven’t derailed the market's long-term advance.

Investors may think the stock market does better under a certain party. But presidential elections haven’t historically affected the market over the long term.

While private markets share some similarities with public markets, there are important differences to understand before adding them to your portfolio.

A wider range of investors are exploring private markets as the barriers to entry fall.

Private markets — similar to public markets — include asset classes such as debt, equity, and real assets.

There are many reasons for investors to consider private markets, including enhanced returns, improved income, and diversification.

Many investors use options — a financial instrument that conveys the right to buy or sell an asset — for the potential benefits they bring a portfolio.