Manage Your Emotions
Many people struggle to separate their emotions from investing. Markets go up and down. Reacting to current market conditions may lead to making poor investment decisions.
Many people struggle to separate their emotions from investing. Markets go up and down. Reacting to current market conditions may lead to making poor investment decisions.
You never know which market segments will outperform from year to year. By holding a globally diversified portfolio investors are well positioned to seek returns wherever they occur.
Holding securities across many market segments can help manage overall risk. But diversifying within your home market may not be enough. Global diversification can broaden your investment universe.
Academic research has identified these equity and fixed income dimensions, which point to differences in expected returns.
Investors can pursue higher expected returns by structuring their portfolio around these dimensions.
The financial markets have rewarded long-term investors. People expect a positive return on the capital they supply, and historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.