By most metrics, we are now in a bear market (20%+ fall in prices). It is easy to look back and say that you saw it coming. You may be feeling regret about the losses we have incurred since the peaks back in January. And all of that is perfectly normal. As will be claims by some that they could help you avoid periods such as this.
Why Diversify?
For the five-year period ending October 31, 2018, the S&P 500 Index had an annualized return of 11.34% while the MSCI World ex USA Index returned 1.86%, and the MSCI Emerging Markets Index returned 0.78%. The under-performance of many foreign markets again this year have led some of our clients to question the role that global diversification plays in their portfolios, some might even be reconsidering the benefits of investing outside the US at all.
2018 Year-End "To Do" List
Last week, we crawled into our attic to retrieve the Christmas tree (allergies in our house consign us to the artificial variety) and about half a dozen boxes that contain the decorations that will adorn the inside of our home for the next month or so. Today, the lights went up on the outside of the house.
We have already received our first Christmas card in the mail and even attended our first holiday party last weekend. Ready or not, the holiday season is upon us.
If you are like me, you have a long list of things to do over the coming weeks. If you are like just about everyone else, you probably don’t have personal financial tasks at the top of your list. While there are always a few things we should all do, with recent market volatility and the passage of The Tax Cuts and Jobs Act, there may be some items that differ from past years.