What Happened In Episode 369?
Key Takeaways:
1. Diversification is key to a smoother investment journey; different types of investments (e.g., mid-caps, small-caps, large-caps, international vs. US) perform differently at various times, helping to mitigate losses in down years and potentially not capturing the full extent of gains in up years.
2. Market performance varies depending on the index referenced (S\&P 500, Dow Jones, Nasdaq), and individual portfolios may not align with these benchmarks, especially if they include a mix of stocks and bonds or different categories of stocks.
3. The S\&P 500's performance can be misleading as it is a cap-weighted index, where larger companies have a greater impact on returns; an equal-weighted S\&P 500 index had significantly lower returns, indicating that a few large-cap stocks drove the majority of the gains.
4. Investing solely in top-performing large-cap stocks or sectors can lead to a roller-coaster ride of significant drawdowns and recoveries, exemplified by the Nasdaq's 33% drop in 2002 and subsequent gains in 2023.
5. Long-term investment strategies that avoid frequent adjustments based on market fluctuations tend to be more effective, as historical average returns account for both up and down years, and consistent allocation allows for compounding over time.
#cfp #financialplanning #financialplanner #S&P500
#monmouthcounty #monmouthcountynj #newjersey #mullooly
#invest #investing #investments #feeonly
Mullooly Asset Management is a fee-only investment advisory firm located in Monmouth County, NJ. We work to educate our clients regarding managing the risk in their investments. We act in a fiduciary capacity with our clients at all times.
Our family of investments advisors (Tom, and his three sons - Brendan, Tim and Casey) are all CFP® Professionals.
To our knowledge, WE ARE THE ONLY FAMILY firm - in the nation - with four fiduciary, fee-only investment advisors who all have earned CERTIFIED FINANCIAL PLANNER™ certification.
Tom Mullooly is an investment industry veteran of over 35+ years. The "Mullooly Asset Show," has over 350 episodes and over 450 unique podcasts, which can be found on the site https://www.mullooly.net.
The "Mullooly Asset Show" answers questions and cover topics that YOU bring up.
Our topics and questions range from those brought up, or sent in, by our viewers.
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1971 State Route 34
Wall Township, New Jersey 07719
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None of the content on our videos, podcasts, website or social media should ever be considered to be investment advice, financial planning advice or a recommendation to buy or sell investments. Nor should our content be considered research. Please our website for complete details.
This video is not a recommendation to buy or sell any of the investments mentioned. None of the securities mentioned in this video represent past specific recommendations of Mullooly Asset Management.
We rely on fundamental and technical analysis. Neither fundamental or technical analysis can predict the future, both methods have flaws. Past performance is no guarantee of future outcomes. Any Point & Figure charts used have been provided by our good friends at Dorsey Wright & Associates.
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