Important News for Our Clients
Happy New Year From Capital Investment Management!

“Hope smiles from the threshold of the year to come, whispering, 'It will be happier.'”
                                               -Alfred Lord Tennyson
 
Why do we make new year’s resolutions? Because we’d all like to live happier and more fulfilled lives. Research indicates that happier people generally don’t fill up their lives with “things” that they hope will make them happy. Will buying that new computer, car, or tech gadget make you happy in the long run? Or instead, would saving money toward a more secure future help cut down on financial stress and maybe even give you the option to retire a little earlier (or enjoy retirement a little more)? Remember; it’s never too late to start saving and investing more.

Check out this article to see 9 Things Happier People Have in Common

Here’s to a happy, healthy, and prosperous 2018!
Diversification and Patience Will See You Through
Though the holiday season is a wonderful time, holiday travel can sometimes be a little less than merry. You make a solid plan, but then things happen beyond your control: maybe your plane gets delayed or luggage misplaced, or perhaps your in-laws show up at your door unannounced. Similarly, with investing, market declines and gains often happen when we least expect them. This unpredictability highlights the importance of being diversified and measured in your response to the unexpected.

Our brains are often our own worst enemies when it comes to making savvy decisions about money. Learn insightful tips from four Nobel Prize-winning experts on how to consistently save more while sticking to a sound financial plan  

When markets drop it may be tempting to make changes to your portfolio. But THIS CHART shows what happened over the past 10 years to those who stayed invested during the Great Recession, those who got out of the market for a year, and those who panicked and went to cash. This is a valuable lesson for investors about how financial markets have tended to reward long-term investors. We can’t control what markets will do, but we can control our reactions.

These astute questions for experienced and novice investors alike illuminate the importance of diversification, tuning out unhelpful media “noise” and managing investment costs as well as investor behavior through the inevitable ups and downs of the stock market. 

Two more great articles touting the importance of patience and staying the course were released in Loring Ward's 360 Insights Winter Newsletter. CLICK HERE to view the following articles:

A Bowl of Cashews and the Nobel-Prize Lesson of Self-Control

Change How You Think About Bull Market Investing
Why Is Re-balancing a Portfolio Important?
You may have heard me use the term "re-balance" from time to time and wondered "What does that mean, and why is it important?" I read in a blog posted by David Allison on the CFA website, where he compared re-balancing to surfing, and thought I'd share the analogy:

" Breaking waves ebb and flow as they move forward. For this reason, a surfer has to periodically re-balance his position on a wave in order to keep riding it. Good surfers move forward more efficiently than novice surfers by knowing when and how to re-balance their surfboards back toward a wave’s power source (or “pocket”). From an investor’s perspective, broad asset classes like stocks and bonds are similar to breaking waves in that their performance also ebbs and flows over time. Consequently, if left alone, an investor’s asset mix will eventually drift away from its power source (or “optimal weighting”). This is where re-balancing comes into play. Re-balancing will prevent you from drifting away from your proper allocation and risk tolerance. Read the articles below for more information as it relates to re-balancing.



 
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Past performance is not indicative of future results and no investment strategy is free from risk, nor do they guarantee returns