Get Invested: Don’t Get Political
Our “Get Invested” series is a simple yet powerful resource designed to help anyone understand why investing in stocks for the long term is one of the best financial decisions they can make. The slide below from our Get Invested piece is titled “Don’t Get Political.”
Letting political beliefs get in the way of “buy and hold” has been extremely costly to investors. Going back 70 years, $1,000 invested in the US stock market only when a Republican is President would be worth $28,000 today. $1,000 invested only when a Democrat is President would be worth more than double that at $72,000. But that $1,000 would be worth almost $2 million today for those who put politics aside and stayed invested regardless of who’s in charge in Washington DC.
If you have any questions about our Get Invested resource, please email us or give us a call at 914-315-1248. You can view the full piece by becoming a Bespoke client.
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Get Invested: “Be Greedy When Others Are Fearful”
Our “Get Invested” series is a simple yet powerful resource designed to help anyone understand why investing in stocks for the long term is one of the best financial decisions they can make. The slide below from our Get Invested piece is titled “Be Greedy When Others Are Fearful.”
One of Warren Buffett’s most famous quotes is to “be greedy when others are fearful.” Unfortunately, many anxious investors can’t stomach losses in the stock market, causing them to go to “all cash” at exactly the wrong times. Take large declines, for example. Since WW2, the S&P 500 has fallen more than 15% in nine different quarters. Following every single instance, the index was higher a year later with an average one-year gain of 25.1%. Similarly, the S&P 500 has had two-quarter drops of 20%+ just eight times, and over the next year, the index was up by at least 17% with gains every single time.
If you have any questions about our Get Invested resource, please email us or give us a call at 914-315-1248. You can view the full piece by becoming a Bespoke client.
Click here to learn more about Bespoke’s wealth management services.
Get Invested: Ignore the Noise
Our “Get Invested” series is a simple yet powerful resource designed to help anyone understand why investing in stocks for the long term is one of the best financial decisions they can make. The slide below from our Get Invested piece is titled “Ignore the Noise.”
It’s hard to avoid monitoring the day-to-day action of the market when your hard-earned money is at stake, but for money that’s invested for the long-term, it’s best to try and ignore the noise.
The left chart below shows daily closing prices for the S&P 500 since the start of 2023. The right chart shows the S&P 500’s average daily closing price over the prior 200 trading days over the same time frame. Ignoring the daily ups and downs of the market and focusing on the longer-term trend is a helpful way to reduce unforced anxiety and potential disruptions to a buy and hold strategy.
If you have any questions about our Get Invested resource, please email us or give us a call at 914-315-1248. You can view the full piece by becoming a Bespoke client.
Click here to learn more about Bespoke’s wealth management services.
Get Invested: Don’t Sleep on Dividends
Our “Get Invested” series is a simple yet powerful resource designed to help anyone understand why investing in stocks for the long term is one of the best financial decisions they can make. The slide below from our Get Invested piece is titled “Don’t Sleep on Dividends.”
Owning the “market” through a “buy and hold” strategy of an ETF like SPY (that tracks the S&P 500) means you’ll capture the dividend yield of the market as well. Over time, those dividends really add up. Since 1993 when the first S&P 500 ETF (SPY) began trading, nearly half of the index’s 2,390% total return has come from capturing and reinvesting quarterly dividend payouts.
If you have any questions about our Get Invested resource, please email us or give us a call at 914-315-1248. You can view the full piece by becoming a Bespoke client.
Click here to learn more about Bespoke’s wealth management services.