In this webinar Shane Tenny, CFP® Professional and partner here at Spaugh Dameron Tenny, speaks on the characteristics of the market in general as well as trends our firm sees as we head into 2019. One concern that many investors share is the increased volatility the markets experienced in 2018, especially toward the latter part of the year. The chart on slide 5 of the presentation shows that volatility is relatively average when considering the history of the market. In fact, one of the reasons investors feel volatility is high is the extremely low levels of volatility in 2012 through 2017.
Another key takeaway from this presentation is how “diversification wins even when it feels like its losing.” We call this phenomenon “market envy.” Shane speaks to the tendency to compare a diversified portfolio to one segment of the market. A feature of a properly diversified portfolio is that one segment of the market by itself (i.e. S&P 500, emerging markets, small cap, etc.) will always be outperforming a diversified portfolio. Our firm encourages investors to always consider their goals and objectives when evaluating the performance of their investments.
For further reading on this upcoming year, check out this article: 10 Things Investors can Expect in 2019.
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Asset allocation does not guarantee a profit or protect against loss in declining markets. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio or that diversification among asset classes will reduce risk. The S&P 500 Index is an unmanaged but commonly used measure of common stock total return performance. It is not available for direct investment.
Will Koster is a financial planner with Spaugh Dameron Tenny. The experience of losing his father as a teenager helped Will find his calling in financial planning. He has a passion for working with dentists and physicians, helping them navigate their unique wealth creation journeys. In addition, Will has become the in-house expert on student loans after completing the Certified Student Loan Professional® training.
For over 50 years, Spaugh Dameron Tenny has provided comprehensive financial planning for physicians and dentists across the U.S. In addition to providing personalized advice, we walk our clients through their options to help maximize finances and maintain financial security.
Securities, investment advisory and financial planning services offered through qualified Registered Representatives of MML Investors Services, LLC. Member SIPC. Supervisory office: 4350 Congress Street, Suite 300, Charlotte, NC 28209, (704) 557-9600. Spaugh Dameron Tenny is not a subsidiary or affiliate of MML Investors Services, LLC or its affiliated companies.→ Check the background of your financial professional on FINRA'S Broker check