Central Banks globally are using monetary policy to attempt to stimulate economic growth. Many opinions have been written about this idea that Quantitative Easing (QE) could potentially lead the US into a situation where we experience hyperinflation. Some of these articles reference the Weimar Republic of Germany, post WWI or Hungary, post WWII as baselines of countries that used to
Just as a car salesperson uses the "blue book" to gauge the approximate price for a newly acquired vehicle, you can use market benchmarks to gauge the approximate performance of your mutual fund investments. Each market index tracks a representative sampling of stocks, bonds, or other securities that may be similar to the holdings in your investment portfolio.
The decision by the United Kingdom to leave the European Union was one that was a bit unexpected by most experts. In some respects it became a referendum on globalization and sovereignty. Given this result, financial markets are under pressure, and we wanted to pass along our thoughts on this historic vote and its overall impact.
A penny saved is a penny earned, right? Not necessarily. Thanks to inflation, over time that penny could be worth less than when it was first dropped into the piggy bank. That's why if you're investing -- especially for major goals years away, such as retirement -- you can't afford to ignore the corrosive effect rising prices can have on the value of your assets.
At its core, diversification is deliberate uncertainty recognizing that it is difficult to know which particular subset of an asset class, or sector is likely to outperform another. Broad diversification, done effectively, seeks to capture the returns of different types of investments over time but with less volatility at any one time.
Many investors, especially those still reeling from the 2008 – 2011 stock market roller coaster ride, have developed a low tolerance for volatility. As a result they have moved a significant portion of their investments into bonds or other fixed yield vehicles.