A decade ago, foreign markets, particularly emerging markets like Brazil and Mexico, were clearly the place to be. But markets changed, and in recent years, U.S. markets have strongly outperformed most foreign markets. This can make it difficult for investors to decide when to invest in foreign funds.
Morningstar’s January 2016 study, Performance Persistence Among U.S. Mutual Funds, found evidence of what academics call “persistence of performance”: funds that have done well recently tend to continue to do well in the coming months and even years.
Most retirees will fund a portion of their lives by making withdrawals from their retirement accounts. The common rule of thumb is that retirees can withdraw 4% from their accounts each year, adjusted for inflation, with a high probability that their assets will last a lifetime.
“Many of the investors I talk to these days aren’t only focused on gains,” FundX President Janet Brown explains in her latest video. “They also want to invest in a way that has a positive impact on the world.” And sustainable responsible investing, or SRI, helps them do just that.
In volatile markets, we tend to focus on what we don’t know: will the sell-off get worse or have we reached a bottom? Is this a routine correction or the start of a bear market? So it helps to remind ourselves what we do know.
Here are four certainties to keep in mind in uncertain times:
1. Stocks have been the best way to make money over time
Most of us are long-term investors. We need to grow our portfolios over many years in order to reach our goals, but it can be a challenge to find a strategy that will be around for decades.
Volatile markets can make us feel like there’s something wrong with the market or with our strategy.
FundX Chief Investment Officer Jason Browne explains why sell-offs feel so scary and what we can do about it.
Click below to watch
Most people invest in order to reach long-term goals, like retirement. But what’s the best way to invest? Should you manage your own portfolio of funds, or have it managed for you?
As you’re investing your portfolio, do you find that you’re primarily focused on the possibility of enduring another massive market decline like we saw in 2008-2009?
This post, written by FundX President Janet Brown, originally appeared on Forbes.