Contract with the Stock Market

Contract with the Stock Market

Expertly Riding the Waves of VolatilityStock market prices

We have prepared this piece to reiterate what we should all know, understand, and believe if we are going to own stocks in our portfolios.  We look forward to continuing to educate you to help you stay well-informed and continue to watch our financial markets closely.

Why do we invest in stocks?

Quite simply, the reason we invest in stocks is because over the last 100 years they have illustrated again and again that if you invest for the long-term that you will, on average, receive about a 10% annual average return.  This 10% return is about 40-50% higher than the return from bonds and about 50-60% higher than the returns from cash over that same 100 year period.  Arguably, the excess returns over bonds and cash will be higher in the low interest rate environment we have become accustomed to for some time now. 
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