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“From a financial planning perspective, the goal isn’t to try to avoid bear markets; it is to choose an allocation between stocks and bonds in such a way that you never have to sell your stocks in a bear market to pay your monthly bills.”

With various world events unfolding, stockholders often wonder how and where to invest in light of these unknowns. However, when investors build portfolios diversified in index and passively managed funds, the “how” and “where” questions often become unsubstantiated. In my latest column, I discuss the advantages of diversification and its performance in light of economic events. I encourage all investors to participate in life’s events, not only with careers, but also with financial practices.