The discipline it takes to be a prudent investor, especially during times of heightened uncertainty, has been a common theme in many of our conversations with clients lately. Emotions can run high; it is a natural response to find yourself tempted into taking action. The non-stop news cycle and the siren call of social media updates also help fuel this sense of urgency.
At times like these, we are often asked to share our insight on navigating challenging environments and what we’ve learned from three decades in the investment management business. Here are a few things we believe investors can do to help instill a long-term mindset:
Finally, think of our team at Litman Gregory as your sounding board and advocate, helping you weigh your natural impulse to act against your long-term goals, work through strategies, and keep your investment decisions and portfolio on track.
Do you have more questions or want to discuss the topics covered in this post? Please call your Litman Gregory Wealth Advisor or contact us here.
Our Perspective and Strategy During Turbulent Times
It’s been a difficult year, to say the least. As September comes to a close, we’ve weathered a disappointing month in the financial markets after a relatively benign August and a strong July. As is the case in any bear market, investors are braced for more to come. In this post we provide a summary on the forces that brought us here, how we’re responding, and what to expect going forward.
With Inflation Rising, Why Have Inflation-Protected Bonds Declined?
As the outlook for inflation turned less “transitory,” treasury inflation-protected securities became interesting to many investors. But these bonds have shown they aren’t immune to broader bond market declines, leaving investors to wonder, “How can my inflation-protected bonds be down when inflation is on the rise?” In this post we explain how these bonds are impacted by different market variables, including inflation, and why we believe they still deserve a place in our client portfolios.
I Savings Bonds Currently Offer a Generous Yield
With current yields over 9%, Series I Savings Bonds seem to offer a "free lunch". These bonds are issued by the U.S. Government and pay interest linked to current inflation rates, making them an attractive option for most savers and investors.