ShankerValleau 360°- Investing through Good Times and Tough Times
In the last few weeks, we’ve witnessed the heartbreaking human toll of Russia’s military assault on Ukraine. We’ve also experienced the deluge of financial and economic analyses on its effects on global markets. As The Wall Street Journal’s executive Washington editor Gerald F. Seib reflected, “Russia’s military incursion deeper into Ukraine is one of those rare events that won’t merely affect the world. It will change the world.”
We do not know what the future may hold but, as Dimensional Fund Advisors explored in its timely piece, “Navigating Geopolitical Events,” ample historical precedent illustrates what can happen during times of political strife. Some markets may grow highly illiquid, or close altogether as severe sanctions and other influences impact trading. Then there’s the Fed’s ongoing efforts to tame inflation. Will they, or won’t they raise rates as originally intended?
As investors where does the recent news leave us?
At ShankerValleau, our investment philosophy is simple: your personal goals and life circumstances should dictate how you are invested, not today’s newsreel. We invest with confidence in a strong portfolio of highly diversified stock funds and bond funds that allow us to stay the course in good times and hard times.
ShankerValleau’s evidence-based approach to investing relies on peer-reviewed academic evidence, long-term market history, practical application, and patient participation. We participate in the market to earn expected long-term returns according to time-tested academic evidence, and combine that with personal goals and individual risk tolerances.
Finally, a note on market timing. Always bear in mind that successful market timing requires two correct decisions: when to pare back your allocation to stocks and when to increase it again. The odds of adding value to a portfolio through market timing are slim. Remember it’s not timing the market, it’s time in the market.
ShankerValleau Investment Philosophy
Near-term market swings are unpredictable. We do not believe one can successfully predict when and how to trade on breaking news, and neither should you. The “expert” stock opinions you hear and read about each day are vulnerable to biases, blind spots and changeable conditions. At ShankerValleau, we believe a strong investment portfolio you can stick with is the best approach to investing.
Are you investing your hard earning savings according to your goals? Or is the 24/7 news cycle dictating your ever-changing investment philosophy? Let ShankerValleau help bring peace of mind to your investments.