The Investment Scientist

Don’t Get Carried Away by (US) Stocks

Posted on: March 2, 2015

Six years after the collapse of the stock market, I must say I begin to see signs that people are forgetting the lesson:

  • Some of my clients are pressuring me to increase allocation to stocks.
  • The US stock market has done better than others, and some of my clients are questioning why bother with global diversification.
  • I have seen portfolios (not managed by me of course) where 90% of money is allocated to US growth stocks.

Recently, Independence Advisor, LLC produces a fabulous video explaining the behavior of investment returns. It’s only five minutes long. Whether you are my clients or not, please watch it in its entirety, then you will understand why I always act as a dampener of emotions. Whether it’s fear or enthusiasm, I would always counsel not to get carried away.

If you want to find out how I can help you, schedule a Discovery review with me. If you are not ready, you can still get my white paper for free: The Informed Investor: 5 Key Concepts for Financial Success.

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Author

Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm based in Washington, DC. He is also a regular contributor to Morningstar Advisor and Physicians Practice. To explore a long-term wealth advisory relationship, schedule a discovery meeting (phone call) with him.



You may also get his monthly newsletter, or join his Facebook page for regular wealth management insights. Michael's email is info[at]mzcap.com.

Twitter: @mzhuang

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