Last month’s commentary ended with the following: “What we do know is that missing out on the few best days in the market which come without warning has a significantly negative effect. So, while it can be tempting to park money in cash right now, as the oft quoted English proverb says, “Good things come to those who wait.” And that is rarely truer than waiting in the market. The low returns as we have experienced recently are a frustrating but common part of investing and we still have confidence that the rewards will come.”
The timing of this reminder could not have been better as global markets have rallied sharply over the past month with many segments up over 10% since low points in late October and early November. Especially in higher-volatility, higher-expected-return asset classes like stocks of small companies, the rally came in bursts. For example, U.S. small-cap stocks returned more than 5% in one day on November 13. The rally pushed many portfolios into solid return territory for the year, helping many investors breathe a sigh of relief.
We hope you feel that sense of relief too, but ultimately our goal is to help you avoid any worry in the first place. While imitating Rip Van Winkle and sleeping for 20 years is a poor strategy for most things in life, investing wisely and then ignoring what happens month-to-month or even year-to-year can yield surprisingly good results.
Disclosure: All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Merriman cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Merriman does not provide tax, legal or accounting advice, and nothing contained in these materials should be taken as such.
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As Chief Operating, Investment, and Compliance Officer, Kristi is responsible for the firm’s investment offerings, client service, operations, and compliance. She and her team are focused on delivering ever greater value to our clients through outstanding service, diversified investment offerings, and easy-to-use technology.
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