All tagged bear market

Another in the Virgin series: Exciting ideas and companies don’t make good stocks.     

Another in the Virgin series: Exciting ideas and companies don’t make good stocks.     

David Creekmore
Common Questions, Stocks

In the last few years almost 200 specialized 'thematic' ETFs and mutual funds have been created. The asset growth of thematic funds quadrupled. Thematic funds offer unique, tactical bets on investment opportunities grouped by a subject or motif. Typically, it’s about technology and our changing future. Thematic funds tend to be a bull market phenomenon, possibly a result of investor overconfidence and enthusiasm. (There’s a good line that bull markets make everyone look smart.) It’s an intuitive strategy: “Let’s invest in a handful of really smart innovative companies that people are excited about, the growth potential is incredible.”

Some things cannot be adequately explained to a virgin.

Some things cannot be adequately explained to a virgin.

David Creekmore
Investing, Life Goals, Common Questions

The other week, a client called me from Mexico on her new vanlife journey around North America. She has modest assets and is trying to define herself less by her job, which she is doing part-time remotely. I’m proudly responsible for the financial plan supporting her life goal. I mentioned to her that the US stock markets were down over 11%. “Oh yeah, look at that,” she said, reviewing her online statements, with interest but not worry. If, like her, you were living your best life last month and not paying attention to the stock market, kudos. It’s not good for investor health or wealth to pay close attention to stock market returns.