Successful investors possess certain attributes that contribute to their financial success. They exhibit effective tendencies such as maintaining a diversified investment portfolio, conducting thorough research before making investment decisions, and implementing a long-term investment plan. These habits contribute to their ability to navigate the complexities of the financial markets and achieve their desired financial outcomes.
Dividend-paying stocks have historically proven to be resilient to recessions and bear markets while potentially providing long-term superior total returns.
Not only have dividend-paying stocks proven their worth in tough markets, but they have also played a significant role in providing long-term returns through all phases of a market cycle. Dividend-paying stocks have generated consistent, positive income streams, regardless of general market cycles, and the long-term compounding benefits of reinvesting dividend payments have significantly added to total returns.
Investing is a crucial skill everyone should learn, and passing this knowledge on to the next generation is especially important. Teaching your children about investing can empower them to take control of their financial future and make informed decisions.
But where do you start when it comes to teaching the next generation about investing? It’s important to begin with the basics and build a strong foundation. Introducing concepts such as saving, budgeting, and understanding the power of compound interest can help lay the groundwork for future investment knowledge.
In the ever-evolving landscape of investment management, the role of conventional investment managers remains crucial and indispensable. While new technology and digital platforms have gained prominence and greater usage in recent years, conventional investment managers bring a unique set of skills and expertise that cannot be replicated by automated systems.
Experienced investors will almost always have a balance in cash and/or cash equivalents (like 90-day treasury bills or other money market investments) as part of a well-diversified investment portfolio.
On a day-to-day basis, holding cash or cash equivalents can provide some form of relief should unforeseen expenses arise. From an investment perspective, viewing cash as part of your asset allocation allows you to hold a defensive cash position and enables swift offensive portfolio purchases, relative to investment market movements.