Even though it doesn’t earn you much return over time, every investor knows that cash is an important component of your overall financial strategy. Beyond providing liquidity for ongoing transactional needs, every household needs to hold cash as a reserve for emergencies. In addition, many experienced investors use cash accounts…
Markets are increasingly concerned about tighter monetary policy by the Fed and its impact on valuations, interest rates and more. Recent FOMC (Federal Open Market Committee) meeting minutes confirmed that the Fed could slow its balance sheet expansion within the next few months and this week’s virtual Jackson Hole Economic Symposium could provide more clarity around future rate hikes. How can long-term investors navigate the policy changes and economic uncertainty that lie ahead?
As the economy shifts from recovery to expansion, one challenge for investors continues to be the high level of valuations. In the long run, valuations are investors’ best North Star since they don’t just tell us how much something costs, but also what we get for our money.
As it often does, the stock market has hit a rough patch due to concerns around the delta variant, economic growth, interest rates and more. Although no two market pullbacks are exactly alike, there have already been several periods of short-term volatility this year in response to similar headlines. For long-term investors, it’s important to remember that these setbacks are a natural, expected, and manageable part of investing.
The housing market continues to heat up alongside the post-pandemic boom. The limited supply of homes, historically low interest rates, rising financial asset prices and other factors have created a sense of urgency among many to buy new homes and list their existing ones.