Investment Management

The Fear of Missing Out: Why FOMO Often Leads to Poor Investment Decisions

Investment Management, Simple Truths About Money, Women and Money / /
FOMO

By now, you’ve probably heard the buzz around SpaceX, OpenAI, and Anthropic. These are companies shaping the future, and the message is hard to miss: you don’t want to sit this one out. That sense of urgency has a name. It’s FOMO, and it’s one of the most common reasons investors make decisions they later regret.

The latest wave is simply the latest example. Fear of missing out has influenced investor behavior for as long as markets have existed, and learning to recognize it is one of the most valuable things you can do for your long-term financial health.

Why FOMO Hits So Hard

FOMO is a deeply human response to uncertainty and social pressure. When an investment opportunity dominates headlines, your brain perceives two threats at once: the fear of missing out on gains and the discomfort of watching others profit while you sit on the sidelines. Both feelings push you toward action, even when patience would serve you better.

It doesn’t help that we’re surrounded by stories of people who got in early on Amazon, Apple, or Bitcoin and earned life-changing returns. What we rarely hear are the far more common stories of people who bought at the peak, endured painful losses, and either sold at the wrong time or waited years just to break even.

Social media and financial news often make matters worse. Consider a recent New York Times headline: “About 20 New Billionaires Could Be Minted by 3 Mega-I.P.O.s.” It’s easy to see how investors can get swept up in the hype.

These platforms are designed to amplify excitement, and emotionally charged financial content tends to generate far more engagement than advice that encourages patience. In reality, widespread enthusiasm is often a sign that an opportunity is maturing, not that it’s just beginning.

The Real Cost of Emotional Investing

A recent MarketWise survey of 1,000 American retail investors found that while only 20% described themselves as emotional investors, 48% admitted to making a FOMO-driven investment in the past 12 months, buying a stock, ETF, or crypto at an all-time high. A full 42% of those investors said they lost money as a result, with an average loss of $1,606.

Meanwhile, research by Barber and Odean found that the most active traders, often driven by FOMO and overconfidence, underperformed passive investors by 6.5% annually on average. That’s not a small gap. Compounded over decades, that difference can mean the difference between a comfortable retirement and a stressful one.

The core problem is timing. FOMO tends to peak exactly when prices are highest, after a big run-up, when the story feels most compelling and the momentum seems unstoppable. However, also tends to be when the risk-to-reward ratio is at its worst. By the time something feels obvious, the market has already priced it in.

Why You’re Better Off Waiting Until FOMO Fades

FOMO doesn’t always look the same. Sometimes it’s chasing a hot IPO. Sometimes it’s piling into a sector after a huge run, convinced the momentum will continue. Other times, it’s buying after a sharp price surge or making a large bet on whatever theme dominates the headlines.

What these situations share is the same underlying dynamic: the decision is driven by what the market has already done, not by a thoughtful assessment of what it might do next. You’re reacting to the past and mistaking it for a signal about the future.

High-profile IPOs are a particularly common FOMO trap because the excitement is so visible and the story so compelling. When a company goes public, institutional investors such as venture capital firms, private equity funds, and asset managers are often the only investors positioned to benefit from the initial price “pop.” By the time most retail investors can buy shares, much of that gain has already been captured.

In fact, investors fortunate enough to buy at the offer price have historically enjoyed substantial first-day gains, often averaging 15% to 22%. Yet for the typical retail investor buying at the market open, first-day returns have averaged just 1.3%.

Research also shows that IPOs frequently underperform the broader market, such as the S&P 500, over the following two-and-a-half to three years as early enthusiasm fades. In other words, you’re often better off waiting until the opportunity feels far less exciting.

Questions Worth Asking When You Feel the Pull of FOMO

If you’re experiencing FOMO, there’s a good chance emotion is driving the decision. Before investing, take a step back and ask yourself a few important questions:

  • Why do I want to buy this? Is it based on research, or because everyone is talking about it?
  • Does this fit my financial goals and timeline, or am I straying from my plan?
  • Does the current valuation leave room for meaningful future returns?
  • How much of my portfolio would this represent, and am I comfortable with that level of risk?
  • What’s my plan if the investment falls 30% in the first year?

These aren’t complicated questions, but they can help reveal whether you’re making a thoughtful decision or reacting to excitement. And if it feels like you don’t have time to ask them, that’s often the clearest sign that you should pause before acting.

A Long-Term Perspective Changes Everything

The most successful long-term investors understand that they don’t need to catch every opportunity. They simply need to avoid the mistakes that can set them back.

Missing an exciting IPO or a hot sector run is rarely as costly as it feels in the moment. What undermines long-term wealth building is taking on too much risk at the wrong time, selling in a panic during downturns, and allowing short-term noise to derail a disciplined strategy.

If you find yourself caught up in the excitement around a particular investment, slow down. Revisit your financial plan. Talk with a trusted advisor. Ask yourself whether you’d still be interested if nobody else was talking about it.

The best opportunities aren’t necessarily the ones that feel most urgent. They’re the ones that fit your goals, your timeline, and your portfolio, regardless of what’s making headlines.

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What Bond Market Volatility Is Telling Us – And Why It Matters

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bond market volatility

From sweeping tariffs to President Trump’s recently proposed “big, beautiful bill,” a wave of policy announcements has rattled the bond market, sending yields higher and sparking renewed concerns about fiscal discipline. While stock market swings tend to dominate headlines, it’s often bond market volatility that provides a clearer view of how investors are truly feeling about the direction of economic policy and government spending.

If you hold bonds in your portfolio, recent developments may feel unsettling. But before making any sudden changes, it’s important to understand what’s behind the turbulence—and why bonds still play a key role in a well-diversified investment strategy.

Understanding the Bond Market

The U.S. bond market is a cornerstone of the global financial system. It enables a wide range of borrowers—from the federal government to municipalities and corporations—to raise capital by issuing debt to investors. In exchange, investors receive regular interest payments and the return of their principal when the bond matures.

Among the many bond types, investors often view U.S. Treasury securities as the safest. Backed by the full faith and credit of the U.S. government, Treasuries are known for their high liquidity, minimal default risk, and reliability, making them a go-to option for investors during periods of economic uncertainty.

Why Investors Are Nervous

While U.S. Treasuries generally are among the safest investments in the world, that sense of security can deteriorate when doubts arise about the government’s fiscal direction. That’s exactly what we’re seeing today.

Recent policy moves—including a sweeping new tariff plan and a large-scale tax-and-spending proposal—have reignited concerns about the rising national debt and the long-term sustainability of U.S. economic policy. These developments have caused bond yields to climb to recent highs and introduced a fresh wave of volatility in the bond market.

It’s easy to interpret these headlines as alarming, but it’s important to put this in perspective. Volatility in the bond market doesn’t function the same way as it does in the stock market.

While equity market swings often reflect company performance or investor sentiment, bond market movements are more closely related to interest rates, inflation expectations, and perceptions of fiscal discipline. In other words, the current turbulence signals a recalibration of investor expectations—not necessarily a crisis.

First: The Impact of Trump’s “Liberation Day” Tariffs

In the immediate aftermath of President Trump’s April 2 “Liberation Day” tariff announcement, the bond market reacted in a familiar way. As equities tumbled, investors sought the relative safety of U.S. Treasury bonds, pushing prices higher and yields lower.

However, that trend quickly reversed. By April 4, Treasuries came under consistent selling pressure, even as stocks continued to slide.

Within just four days, the 10-year Treasury yield surged from 4.20% to over 4.50%, its sharpest jump since the 2008 financial crisis. Because bond prices move inversely to yields, this surge signaled a significant drop in prices.

Instead of acting as a safe haven, investors were selling off government bonds alongside equities—an unusual dynamic that only deepened market uncertainty. For an asset class typically viewed as a global refuge during times of turmoil, this shift was a clear sign of growing unease about the government’s fiscal direction.

In response to the mounting pressure, the Trump administration backed off parts of the tariff proposal in an effort to calm markets and restore some stability.

Next: The “Big, Beautiful” Tax Bill

The bond market faced its second major jolt in May when President Trump’s “big, beautiful” tax bill advanced through a key congressional committee. The proposal—featuring extended tax cuts, a higher debt ceiling, and trillions in new spending—quickly raised red flags among fiscal policy experts.

According to the nonpartisan Committee for a Responsible Federal Budget, the plan could add approximately $3.3 trillion to the national debt by 2034, or closer to $5.2 trillion if temporary provisions become permanent.

Markets were already on edge, and the uncertainty surrounding the bill’s final form only heightened investor anxiety. That pressure intensified when Moody’s downgraded the U.S. credit outlook, citing the government’s growing debt burden and diminishing fiscal flexibility.

Investor concerns became even more evident during a 20-year Treasury auction later in the month, where demand came in well below expectations. Buyers pushed for higher yields, clearly signaling that they now view U.S. debt as carrying greater risk and want to be compensated accordingly.

As a result, the 30-year Treasury yield climbed to 5.14%, its highest level since October 2023. The message to Washington was clear: if the government continues down a path of heavy borrowing and spending, investors will demand higher returns, making it more expensive to finance the nation’s growing debt.

What Bond Market Volatility Means for Investors

President Trump’s proposed tariff plan and multi-trillion-dollar tax-and-spending bill have shaken investor confidence in U.S. Treasuries—long viewed as one of the safest investments in the world. The tariffs raise fears of higher inflation, while the spending plan raises concerns about growing government debt.

While interest rate expectations often drive bond prices, they’re not the only factor. Perceived risk, especially around inflation and fiscal policy, can be just as important.

When investors expect inflation to rise, they demand higher yields to make up for the reduced value of future interest payments. Meanwhile, when government debt increases without a clear plan to manage it, investors begin to question the country’s long-term financial stability.

This uncertainty often leads to higher risk premiums and rising yields, even if the Federal Reserve hasn’t changed rates.

Putting Bond Market Volatility in Perspective

If the recent bond market headlines have you feeling uneasy, you’re not alone. Sudden spikes in yields and talk of credit downgrades can make even seasoned investors take pause. But this isn’t a reason to panic—it’s a normal part of how markets react to changing conditions.

It’s also important to remember that bonds still play a critical role in a diversified portfolio. They help manage risk, preserve capital, and generate income, especially during periods of stock market stress. Part of the reason this moment feels so unusual is because, most of the time, bonds are the calm in the storm—and more often than not, they still are.

Rather than getting swept up in the headlines, it’s more helpful to stay grounded in your broader financial plan. Volatility is a normal part of investing, and your portfolio is built to handle moments like this. What matters most is having a strategy that reflects your goals and balances the risks across different parts of the market.

If you’re feeling uncertain or wondering whether your current investment approach is still the right fit, now is a great time to connect with your financial advisor. A well-crafted plan—one that’s built with the long term in mind—is the best way to stay focused and move forward with confidence, no matter what’s happening in the markets.

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Emotional Investing: Mastering Your Mindset in Turbulent Times

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Emotional Investing

When markets are volatile—as they have been recently—it’s easy to let emotions take the wheel. Fear, uncertainty, and the urge to “do something” can quickly override even the most carefully laid plans and lead to emotional investing.

This isn’t a sign of inexperience; even seasoned investors fall into the trap of reacting emotionally when the headlines feel overwhelming. The truth is, we’re wired to seek control in uncertain situations, and that often means making moves that feel productive in the moment but hurt us in the long run.

Fortunately, when we understand the emotional biases behind our decisions and put thoughtful systems in place, we can create a buffer between our instincts and our actions—making it easier to stay grounded and focused, even in turbulent times.

Why We Make Emotional Investment Decisions

Our brains weren’t designed for long-term investing—they were designed for short-term survival. From an evolutionary perspective, when we sense danger, it’s our limbic system—the emotional center of the brain—that takes over. This system is responsible for quick, instinctive reactions like fight or flight.

In moments of market turmoil, it can easily overpower the more rational prefrontal cortex, which governs logic and long-term planning. The result is a tug-of-war between emotion and reason, often leading to cognitive biases that derail sound decision-making.

Common examples of these biases include:

  • Loss aversion makes the pain of losing feel twice as intense as the pleasure of an equivalent gain, according to Nobel laureates Daniel Kahneman and Amos Tversky—prompting rash decisions to avoid further loss.
  • Recency bias causes us to fixate on the latest downturn, assuming it will continue.
  • Confirmation bias leads us to favor headlines that reinforce our fears.
  • Herd mentality drives us to follow the crowd, even when the data says otherwise.

Recognizing these patterns is the first step toward developing a more disciplined, resilient investment strategy.

The Cost of Emotional Investing

Different market environments can stir up different emotional traps—each one capable of leading investors off course.

In bull markets, rising prices and media buzz often fuel FOMO (fear of missing out), pushing investors to chase hot stocks or take on too much risk. Overconfidence can creep in, too, leading many to forget that markets don’t rise forever. We’ve seen this pattern before: during the tech boom of the late ’90s, the housing bubble before 2007, and more recently, with the surge in bitcoin.

In bear markets, it’s the opposite. Fear and uncertainty take hold. Panic selling becomes common as investors try to “cut their losses,” often locking in declines that might have been temporary. The 2008 financial crisis was a clear example of how emotions can drive poor decisions.

The impact of these choices is real. According to Dalbar, from 1994 to 2023, the average equity investor earned an annualized return of 8.01%, while the S&P 500 returned 10.15%—a gap largely explained by mistimed buying and selling.

Morningstar also found that over the 10 years ending December 31, 2023, the average fund investor underperformed their actual investments by 1.1% per year. Put simply: it’s not just what you invest in that matters—it’s how you behave.

Staying disciplined and keeping emotions in check isn’t always easy, but it’s one of the most important things you can do to stay on track toward your long-term goals.

Practical Strategies to Avoid Emotional Investing

Emotions are a natural part of investing, but they don’t have to drive your decisions. With the right systems in place, you can reduce emotional interference and stay aligned with your long-term goals.

Here are four strategies that can help you stay the course when your emotions take hold:

#1: Create a Detailed Investment Policy Statement (IPS)

Before putting any money to work, it’s important to build a written plan that clearly defines your goals, risk tolerance, target asset allocation, and the circumstances under which you might make changes. This kind of structure—often called an Investment Policy Statement (IPS)—acts as your financial compass, keeping you grounded when markets become unpredictable.

Instead of reacting to headlines or short-term swings, you can revisit your IPS to stay focused on the strategy you thoughtfully set in place.

#2: Automate Contributions and Rebalancing

The fewer decisions you need to make, the better. Automating your monthly contributions takes the guesswork out of when to invest and builds consistency across all market environments.

In addition to setting up automatic deposits into your retirement accounts, consider directing fixed amounts to your emergency fund and other investment accounts. This kind of automation keeps your financial plan in motion—even on the days when your emotions might try to pull you off course.

#3: Lean Into Dollar-Cost Averaging (Especially in Volatile Markets)

Dollar-cost averaging—consistently investing a fixed amount at regular intervals—can help take the emotion out of investing by shifting your focus from short-term market swings to long-term growth. It’s especially effective during periods of volatility, when the urge to pause or make impulsive moves can be strongest.

A recent study from Vanguard found that this strategy not only helps reduce the risk of mistiming the market, but often leads to a lower average cost per share over time.

#4: Work With a Financial Advisor as an Emotional Buffer

Sometimes, the smartest investment move is choosing not to act—and that’s where a trusted advisor can make all the difference. A skilled financial advisor serves as a steady buffer between your emotions and your money, guiding decisions based on strategy and data rather than fear or impulse.

We provide perspective during turbulent times, help you stay aligned with your long-term goals, and offer the accountability and clarity you might need to navigate uncertainty with confidence.

Manage Your Emotions and Invest with Confidence

Emotional investing is one of the most common—and costly—mistakes investors make. But with the right strategies in place, it becomes easier to block out short-term noise and stay committed to your long-term goals.

Remember, mastering your mindset isn’t a one-time event—it’s a lifelong practice that deepens with experience. Having the support of a trusted financial advisor can make that journey more intentional, especially during periods of uncertainty.

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Navigating Market Uncertainty During Trump’s Second Term

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Market Uncertainty

The news cycle is buzzing with speculation about what Donald Trump’s second term might mean for the economy. His agenda could be highly disruptive with priorities like imposing tariffs, expanding domestic energy, extending tax cuts, deporting undocumented immigrants, and deregulating industries.

However, the outcome is uncertain, and investors don’t like uncertainty. This could result in a bumpy ride in the market in the coming months.

Market Volatility: Yes, It’s Unnerving, But It Doesn’t Imply Direction Of The Market

Widely fluctuating balances in your accounts can be unnerving, especially with political drama. It’s hard not to think, “This time, it’s different.” This instinct to hit “sell” and wait for calmer waters can be intense.

But history shows us that markets are resilient. Under most presidents—Democrat or Republican—the S&P 500 has delivered solid long-term returns.

5 Smart Moves to Protect Your Financial Plan Against Market Uncertainty

So how can you stay calm and confident when the markets are swinging? Start here:

  1. Build a Cash Safety Net
    Life happens. Whether it’s an unexpected expense or the emotional comfort of having “what if” money, a solid cash reserve is your best defense against uncertainty. Aim for 3–6 months of living expenses.
  2. Resist the Urge to Overreact
    Markets don’t reward panic. Don’t overhaul your portfolio based on headlines or short-term fears. Instead, stick to your investment plan unless there’s a clear, data-driven reason to adjust.
  3. Reassess Your Risk Tolerance
    If this latest bout of volatility has you losing sleep, it may be time to revisit your risk profile. But remember pulling out of the market entirely is rarely a winning move.
  4. Take a Break from Portfolio Watching
    We get it—refreshing your account balance every day is tempting. But constant monitoring during volatile times can lead to stress and bad decisions. Trust your plan and give yourself some breathing room.
  5. Stay Consistent with Your Investments
    Keep making those regular contributions, even when the markets feel rocky. Dollar-cost averaging helps you take advantage of dips, positioning your portfolio for future growth.

The Best Course: Stay Disciplined

Know that the financial decisions you make today set the foundation for your future. Whether you’re planning for retirement, supporting a family, or building generational wealth, staying disciplined during market uncertainty is key to achieving your goals.

Remember, investing isn’t about timing the market—it’s about time in the market.

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How Presidential Elections Affect the Stock Market: A Historical Perspective

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Presidential Elections and the Stock Market

When it comes to Presidential Elections and the stock market, history shows that the outcome has little impact on long-term performance.

As the 2024 U.S. Presidential Election approaches, many investors are worried about its potential impact on the stock market. The situation has become even more uncertain since President Biden’s withdrawal from the race. While Vice President Harris is considered a likely successor, an official Democratic nominee has yet to be announced.

Despite the current ambiguity, historical data offers a reassuring perspective: presidential elections typically don’t have long-lasting effects on financial markets. In fact, stocks have shown a tendency to rise over time, regardless of which party occupies the White House.

To help ease concerns about this year’s election outcome, let’s explore some key insights from past market performance during election cycles.

How the Stock Market Performs in Presidential Election Years

Historically, the U.S. stock market has exhibited distinct patterns during presidential election years. For instance, in the months leading up to an election, market volatility tends to increase as investors grapple with the uncertainty surrounding the outcome and its potential economic implications.

However, a closer look at market trends in the months following past elections reveals a more nuanced picture. Specifically, in the immediate aftermath of an election, the stock market often experiences a brief period of increased volatility as investors adjust to the new political reality.

This volatility can be particularly pronounced if the election results are unexpected or if there’s a prolonged period of uncertainty. One notable example is the contested 2000 election between George W. Bush and Al Gore when the S&P 500 fell -7.8% from Election Day through year-end.

Meanwhile, quarterly stock market performance during presidential election years tends to vary. While the first half of election years is often sluggish, stronger performance in the second half of the year frequently follows.  

For instance, since 1926, the average returns for the S&P 500 in the first and second quarters of election years have been relatively modest at +1.3% and +1.5%, respectively. However, market growth has historically accelerated in the third and fourth quarters, with average returns of +6.2% and +3.3%, respectively.

Despite these short-term fluctuations, the stock market has generally displayed resilience during election years. In fact, research from LPL Financial shows that since 1952, the S&P 500 has generated an average return of +7% during presidential election years, suggesting that the market tends to adapt relatively quickly to new administrations and their policies.

Understanding the Longer-Term Impact of Presidential Elections on the Stock Market

Depending on the analysis period, historical returns may suggest that the stock market performs better under one party compared to the other. For instance, from 1952 through June 2020, the average annual real return for the S&P 500 was +10.6% under Democratic presidents and +4.8% under Republican presidents, according to a recent Forbes analysis.

Yet, stock market performance doesn’t always move in lockstep with the economy (or election cycles for that matter). For example, Bill Clinton was president during one of the most noteworthy economic expansions and bull markets in history; however, George W. Bush was actually in the White House when the expansion began.

Despite the performance patterns that tend to emerge leading up to and following election years, U.S. stocks have historically posted gains over the long run regardless of which party is in the White House. In fact, over the last 50 years (as of April 30, 2024), the S&P 500 has delivered an average annual return of +11.35%.

Exploring America’s Most Contentious Presidential Elections

The U.S. presidential election between Joe Biden and Donald Trump in 2020 was remarkably contentious, but it wasn’t the first time the nation faced such a divisive electoral battle. Throughout American history, several presidential elections have left a significant mark due to their intense disputes and enduring impacts.

These elections illustrate the enduring challenges of the U.S. electoral system and the nation’s capacity to navigate political crises. While the specifics of each case differ, the underlying theme remains the same: the resilience of American democracy and the U.S. economy in the face of profound political divisions.

The Election of 1800: Jefferson vs. Adams

The election of 1800 between Thomas Jefferson and John Adams is often cited as the first major contentious presidential race. The Federalist incumbent Adams faced off against his Democratic-Republican challenger Jefferson in an election that highlighted deep political divisions.

The electoral tie between Jefferson and Aaron Burr, both from the same party, led to a prolonged decision process in the House of Representatives. Ultimately, Jefferson’s victory set a precedent for the peaceful transfer of power, a cornerstone of American democracy.

During this early period, detailed stock market data is sparse, but the election didn’t significantly disrupt the fledgling U.S. economy.

The Election of 1876: Hayes vs. Tilden

Perhaps the most contentious election in U.S. history occurred in 1876 between Rutherford B. Hayes and Samuel J. Tilden. Tilden won the popular vote, but 20 electoral votes from four states were disputed amid accusations of fraud and corruption.

The Compromise of 1877 resolved the stalemate, which awarded the presidency to Hayes in exchange for the withdrawal of federal troops from the South, effectively ending Reconstruction. This compromise had long-lasting repercussions, particularly for African American civil rights​.

Stock market data is also sparse from this period, but the aftermath of the Civil War and the Panic of 1873 heavily influenced economic conditions, and not in a good way.

The Election of 1912: Wilson vs. Roosevelt vs. Taft

The 1912 election was another highly contentious race involving former President Theodore Roosevelt, incumbent William Howard Taft, and Democrat Woodrow Wilson. After failing to secure the Republican nomination, Roosevelt ran as a third-party candidate under the Progressive Party, splitting the Republican vote and enabling Wilson to win.

This election was marked by Roosevelt’s dramatic campaign, including surviving an assassination attempt and continuing his speech despite being shot. The division within the Republican Party highlighted the era’s intense political strife and paved the way for Wilson’s progressive reforms. 

Better stock market data exists for this period. The Dow Jones Industrial Average showed a modest performance throughout the year, reflecting investors’ adjustment to the political uncertainty and the split in the Republican Party.

The Election of 2000: Bush vs. Gore

The 2000 election between George W. Bush and Al Gore is famous for its protracted and bitter dispute over Florida’s electoral votes. The close vote count led to multiple recounts and legal battles, culminating in the Supreme Court’s decision in Bush v. Gore, which effectively awarded Florida’s electoral votes to Bush, securing his presidency.

The controversy over ballot design, voter intent, and the integrity of the electoral process raised serious questions about the robustness of American democracy​. The S&P 500 experienced significant volatility as a result and ended the year with a loss of -9.1%.

The Election of 2020: Biden vs. Trump

The 2020 election between Joe Biden and Donald Trump was particularly contentious, marked by claims of fraud and a prolonged vote count. Despite the political turmoil, the S&P 500 ended the year with a strong performance, gaining +18.4%. This was largely due to the market’s optimism about post-election stability and the expected economic recovery from the COVID-19 pandemic.

Time in the Market Matters More Than Political Party

While presidential elections can trigger short-term market swings, the long-term performance of the U.S. stock market has historically been more influenced by time invested rather than by which party controls the White House. Consider this striking example: from 1926 to 2023, a $1,000 investment in the stock market, with dividends reinvested, would have grown to over $14.5 million—regardless of which political party held the presidency.

This remarkable growth highlights two crucial points for investors:

  1. The power of maintaining a long-term investment strategy, rather than attempting to time the market based on election outcomes.
  2. The significant impact of compounding returns over extended periods.

These insights underscore why staying invested for the long haul is often more beneficial than making reactive decisions based on short-term political events.

Presidential Elections and the Stock Market: Additional Considerations for Long-Term Investors

While understanding the historical relationship between presidential elections and the stock market can be helpful, it’s important to recognize the limitations and caveats of these analyses.

First, elections are inherently unpredictable. Despite the increasing sophistication of polling methods and political forecasting, there’s always the potential for unexpected outcomes or events that can significantly impact the market. The 2016 U.S. presidential election, for example, defied many pollsters’ predictions and led to a brief period of market volatility before stocks ultimately rebounded.

Additionally, it’s crucial to remember that presidential elections are just one of many factors that can influence the stock market. Economic indicators such as GDP growth, inflation, and employment rates, as well as corporate earnings, interest rates, and global events, all play significant roles in shaping market sentiment and performance. In many cases, these factors outweigh the impact of an election.

As an investor, it’s crucial to maintain a long-term perspective and stay focused on your financial goals. By staying informed and sticking to your investment plan, you can successfully navigate short-term market fluctuations and position yourself for long-term financial success.

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Navigating Uncertainty: October Market Review and Outlook

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October Market Review

In this October market review and outlook, we provide a summary of recent events in the economy and financial markets and offer insights into what this may mean for investors moving forward.

For the last year, forecasters have been predicting an economic downturn in the United States as the Federal Reserve (Fed) strives to control inflation by raising interest rates. Historically, the Fed has had difficulty achieving an economic “soft landing”—that is, taming inflation without causing a damaging recession—when raising rates.

However, more than a year into the Fed’s rate hike cycle, the U.S. economy remains resilient. In fact, the first estimate of third-quarter GDP growth came in at an annual rate of 4.9%, its fastest pace since 2021.

Meanwhile, financial markets have taken a hit in recent months. Both the S&P 500 and Nasdaq dropped more than 10% from their July highs in October, placing both indexes in correction territory. The bond market has also struggled recently as interest rates climb higher.

As we near year-end, many investors are concerned about what a potential recession and ongoing market volatility may mean for their money. Here’s a recap of what’s happened lately and what that may mean for investors heading into 2024.

The Economy Remains Resilient

Since March 2022, the Fed has hiked interest rates 11 times, raising the federal funds rate from near-zero to a target range of 5.25% to 5.5%. However, the Fed has held rates steady since July 2023 in light of moderating inflation and a remarkably resilient labor market.

According to the latest reading of the personal consumption expenditures price index, the Fed’s preferred measure of inflation, core inflation is now 3.7% year over year. While this is significantly lower than its peak reading in June 2022, it’s still a far cry from the Fed’s 2% annual target.

Meanwhile, the unemployment rate continues to hold steady at 3.8%, and third-quarter wages and benefits grew 4.3% year over year. Due in part to ongoing labor market strength, consumer spending increased by 4% in the third quarter, propelling GDP to an annual rate of 4.9%.

October Market Review: Financial Markets Continue to Struggle

Despite strong economic performance, the U.S. stock market continued its decline in October, marking three straight months of negative returns. A variety of factors are in part responsible for the recent pullback in performance, including:

  • Soaring Treasury yields. The yield on the 10-year Treasury note approached 5% in October, the highest level since 2007, curbing investors’ appetite for risk and creating headwinds for big tech and other high-growth companies.
  • Tax-loss harvesting. The recent pullback prior to October created more opportunities for tax-loss harvesting, which put additional pressure on the market in October as investors sold underperforming stocks to offset gains. On the bright side, research from Bank of America shows that although tax-advantaged selling typically pressures stocks at year-end, it often sets the stage for a strong rebound in January when traders repurchase.
  • Higher-than-expected GDP growth. Third-quarter GDP grew at a surprising 4.9% annualized rate, quashing hopes that the Fed will lower interest rates in the near term.
  • Ongoing geopolitical tensions. Russia’s war in Ukraine and the Hamas-Israel conflict continue to add to market uncertainty.

The bond market has also seen weakness as interest rates continue their ascent (in general, bond prices fall as interest rates rise, and vice versa). Both 10-year and 30-year Treasury yields increased more than 0.3% in October, causing longer-term bonds to underperform.

Looking Ahead: Underlying Economic Concerns

Although the U.S. economy continues to hum along, concerns of a potential downturn persist. Some of the factors that could contribute to an economic slowdown include:

  • Declining real disposable income and household savings. Personal income adjusted for taxes and inflation fell 1% in the third quarter after rising 3.5% in the second quarter. Furthermore, personal savings as a percentage of real disposable income fell from 5.2% in the second quarter to 3.8% in the third quarter. As consumers eat through their savings, they may not be able to spend at the same rate going forward.
  • Rising long-term interest rates. Long-term interest rates recently saw their highest levels since 2007. For example, 10-year Treasury yields briefly passed 5% in October, while 30-year yields traded north of 5% for most of the month. Higher rates may be problematic for consumer spending and business investment, as well as several business sectors including the housing market.
  • Tighter credit markets. According to a recent survey from the National Federation of Independent Business, more small businesses reported difficulty accessing credit in September compared to the previous month. The inability to secure capital could lead to a pullback in business investment and hiring.

If these concerns come to fruition, financial markets and the economy might falter accordingly. On the other hand, an economic slowdown could alleviate the need for further Fed intervention, paving the way for future interest rate cuts.

What This Means for Investors

Although recent GDP data is encouraging, these growth rates may not be sustainable as underlying economic concerns create pressure for consumers and businesses alike. While a full-blown recession may not be imminent, many economists expect the economy to cool in the coming months.

Meanwhile, the Fed will decide whether future rate hikes are necessary as new data becomes available. Despite holding rates steady since July, another increase is possible before year-end.

For investors, this lack of clarity may mean heightened market volatility in the near term. At the same time, November is historically the best month for the S&P 500. Indeed, strong performance from U.S. equities could help offset recent losses.

Ultimately, we don’t know what the future holds. However, we do know that patience tends to reward long-term investors. Those who maintain a diversified portfolio and stick to their investment plan typically fare better than those who attempt to time the market.

In the meantime, I encourage you to focus on what’s controllable—for instance, your spending habits, savings rates, and investment decisions—and avoid knee-jerk reactions to negative headlines.

If you found this October market review and outlook helpful, head over to our free resources page for more financial planning tips and guidance.

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Single Women and Longevity Risk Part 2: The Importance of Investing

Financial Planning, Investment Management, Retirement Planning, Women and Money / /
Single Women and Investing

Saving and investing are both crucial for financial health. Yet investing is particularly important when it comes to mitigating longevity risk.  In Part 2 of this three-part series about single women and longevity risk, we’ll delve into the significance of investing and explore how understanding risk and reward can empower women to become better investors.

Differentiating Saving and Investing

When it comes to personal finance, many conflate saving and investing. While both are crucial for financial stability, they serve different purposes.

Saving entails setting aside a portion of your income for near-term expenses or potential emergencies. In other words, your savings should be a safety net that’s liquid and risk-free.

Investing, however, implies allocating money to stocks, bonds, and other assets in anticipation of a potential return in the future. Despite the inherent risks, investing is an essential strategy for single women to increase wealth over time, so you don’t outlive your financial resources.  

Understanding the Risk-Reward Relationship

While investing offers the potential for a higher return on your money, it’s also inherently riskier than saving. That’s why many women hold too much cash relative to their financial goals.

If you tend to be risk averse, you’re not alone. In fact, one Northwestern Mutual study found that in general, U.S. adults prefer to play it safe with their money than take risks.

However, understanding the risk-reward relationship is crucial for overcoming the confidence gap that many women experience as investors. Each investment carries a different level of risk, and effectively managing these risks is essential to achieve your financial goals.

Typically, investments with the potential for higher returns carry a higher degree of risk (although high risk doesn’t guarantee high returns). For example, higher-risk investments like individual stocks and equity funds generally offer the potential for higher returns over time. Conversely, lower-risk assets like savings accounts and short-term Treasury bonds tend to yield more modest returns.

Navigating the Risk vs. Reward Dilemma

Many women face the dilemma of whether to keep their money safe in a bank account or invest it for potential growth. Indeed, research suggests that men are generally more willing to take risks with their finances than women.

However, studies also indicate that as women gain confidence through education and experience, they become better investors. Moreover, women investors are more likely to exhibit traits such as reduced trading, increased patience, openness to advice, more diversified portfolios, and a healthy skepticism towards “hot” investments.

Ultimately, your financial goals determine the level of returns you need from your investments. Saving for a house down payment in the next few years, for example, might require safer investments with less risk. In contrast, saving for retirement that’s several decades away allows for higher-risk investments with the potential for more significant returns.

But you also need to weigh your return objectives against your comfort level with taking on risk. In this case, risk generally refers to the possibility of losing your money. Taking on more risk than you can tolerate can lead you to make rash investment decisions that impede your progress toward your financial goals.

Single Women and Investing: Mitigating Longevity Risk

To mitigate the risk of running out of money prematurely, women must embrace some investment risk. By profiling four different investors, we can illustrate the outcomes along the risk spectrum.

Assume the following savers/investors invest $50,000 for ten years and reinvest all interest and dividends.

  • Investor #1 places her $50,000 in a savings account earning an average annual return of 1.5%. Her account grows to $57.815 in 10 years.
  • Investor #2 places her $50,000 into a certificate of deposit (CD) with an annual yield of 3%. Her account grows to $67,196 in 10 years.
  • Investor #3 places her $50,000 into a diversified portfolio* of 60% stocks and 40% bonds earning a 6% average annualized return. As a result, her account grows to $89,542 in 10 years.
  • Investor #4 places her $50,000 into a diversified portfolio* of 100% stocks, and it earns a 9% average annualized return. As a result, her account grows to $129,687 in 10 years.

A Note on Volatility

While the 100% stock portfolio generates the highest outcome, it also experiences substantial fluctuations over the 10-year period. Meanwhile, the 60% stock/40% bond portfolio exhibits less volatility due to the lower risk associated with bonds. 

Consider the following hypothetical annual return patterns for these two portfolios:

The graphs above illustrate how Investor #4 experiences larger swings in performance over the 10-year period by investing exclusively in stocks than Investor #3. In other words, the price of higher returns is generally increased volatility.

Thus, investors who are unable to weather the ups and downs of the stock market may need to sacrifice return potential to stay the course over time.  

*Diversified portfolio returns were generated using Vanguard Total Market Funds, both U.S. and international.

Striking the Right Balance to Reach Your Financial Goals

The challenge for many independent women investors is understanding their risk tolerance in relation to their need for return.

For example, if Investor #1 doesn’t invest in stocks, will she reach her financial goals and manage longevity risk, or will she run out of money before the end of her life? On the other hand, does Investor #4 need to take quite so much risk, or can she beat longevity risk by investing in a less volatile portfolio?

These are the answers I seek when working with my female clients. Ultimately, my aim is to keep my clients invested for the long term to experience the magic of compounding returns and reach their financial goals.

In the third and final article in this blog series, we’ll look at the other side of the equation: minimizing longevity risk by managing your expenses in retirement.

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Is a U.S. Recession Looming?

Investment Management, News, Women and Money / /
Is a Recession Looming?

Since mid-2022, concerns about an impending recession in the United States have been making headlines. However, despite various warning signs and indicators, the U.S. economy has shown resilience over the past nine months.

So, what’s happening? In this blog post, we’ll explore the factors that have fueled recession concerns, discuss the current state of the U.S. economy, and examine whether investors should be worried about a potential recession.

Understanding a Recession

Typically defined as two consecutive quarters of contracting gross domestic product (GDP), a recession indicates a significant decline in economic activity. By this definition, the U.S. economy is not heading for a recession, as GDP grew by 1.3% in the first quarter of 2023.

The National Bureau of Economic Research (NBER) is responsible for officially declaring recessions. Its definition is somewhat vague but emphasizes significant and sustained decline in economic activity across various sectors.

Mixed Economic Signals and Concerns

Mixed economic data has economists divided on whether a recession is imminent.

The Federal Reserve’s projection of low GDP growth for 2023 and successive interest rate hikes have raised concerns about a potential economic decline. A minor banking crisis, resulting in the failures of some financial institutions, also fueled worries.

Moreover, inflation has remained above the Fed’s target, prompting rate hikes that affect corporate investments and consumer loans. As a result, analysts expect negative earnings growth for S&P 500 companies, while a tightened credit market has reduced lending to corporations and consumers.

Meanwhile, the yield curve has been inverted since the middle of 2022, as the yield on 2-year U.S. Treasury notes has exceeded that of 10-year Treasury notes. An inverted yield curve can be problematic as it frequently appears before an economic downturn.

And the New York Federal Reserve’s recession probability indicator, which uses the yield curve’s slope to predict U.S. recessions, suggests a 68.2% chance of a recession in the next 12 months—its highest reading in four decades.

Yet while some indicators have sparked concerns, the current strength of the U.S. labor market and economic activity has divided economists on the inevitability of a recession. In addition, positive earnings, as well as guidance from retailers like Walmart, indicate that consumer spending remains strong.

Though slightly below estimates, retail sales grew for the first time since January. The resilience of the U.S. economy has surprised experts, suggesting that a recession may be farther in the future than expected.

What Does a Possible Recession Mean for Investors?

While concerns about a U.S. recession persist, the economy’s current state and the labor market’s ongoing strength suggest that an immediate downturn may not be inevitable. However, in the event of a recession in the second half of 2023 or early 2024, investors need not panic. Historically, recessions have been relatively short-lived, with an average duration of around 10 months.

Economic downturns also tend to present attractive opportunities for long-term investors, with the S&P 500 generating an average return of 40% in the 12 months following the market’s low point during a recession. In addition, some stocks, such as Target, Walmart, and Home Depot, have historically performed well during recessions.

Thus, despite the potential risks, investors should take a long-term perspective and consider the historical patterns of economic cycles. Recessions, although challenging, have often paved the way for favorable investment opportunities.

For more information, download our free guide: 3 Simple Steps to Improve Your Investment Results

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Oil’s Wild Ride

Investment Management, News / /
Rising Oil Prices

Much like stocks, oil prices have been on a rollercoaster ride recently. Triggered by Russia’s invasion of Ukraine, prices spiked to their highest levels since 2008 this month and then tumbled into bear market territory five days later. (In general, a price drop of 20% from a previous high represents a bear market.)

The recent drop in oil prices is the fastest decline into bear market territory since April 2020. Then, prices fell more than 20% and turned negative in a single day. Yet a dramatic change in oil prices typically doesn’t trigger the same emotional response that a similar change in stock prices would. Perhaps this is because oil markets tend to be even less understood than equity markets.

To put the many headlines you’re likely seeing about oil into perspective, I thought it would be helpful to provide an overview of how oil markets work, why we’re seeing volatility right now, and what this means—or doesn’t mean—for gas prices.

What Is the Oil Market?

There are two primary markets for crude oil: the physical market and the futures market. In the physical market, large producers like Exxon Mobil pump oil from the ground and sell it to processing companies, which then refine it into products like gasoline and jet fuel. A handful of companies act as middlemen, shipping oil around the world through various channels.

Meanwhile, the oil futures market is an electronic financial market consisting of banks, brokerages, and firms that deal in energy. Producers, refiners, traders, and other market participants use futures contracts to lock in oil prices for future transactions. For example, Southwest Airlines uses futures contracts to mitigate rising oil prices and keep costs low for its customers.

In the physical market, private deals between buyers and sellers determine prices. Details of these transactions aren’t widely available, making the physical oil market somewhat murky. Companies like S&P Global Platts publish daily price estimates known as spot prices based on discussions with traders.

The futures market is more transparent. Futures trade on two main exchanges, CME Group’s New York Mercantile Exchange in the U.S. and Intercontinental Exchange in London. The prices of these contracts are widely available.

Types of Crude Oil

Crude oil is graded according to thickness and sulfur content. Light, sweet crude oil is the highest grade and therefore the most sought after, as it is easier and cheaper to refine.

West Texas Intermediate (WTI), the primary oil benchmark for North America, is light and sweet because it contains very little sulfur. It is sourced primarily from inland Texas and is one of the highest quality oils in the world. Because the fracking boom has turned the United States into the world’s largest producer, WTI prices are followed globally.

WTI is similar to Brent crude, which they produce off the coast of Northern Europe. Brent is the main oil benchmark for most of the world. It is also very high quality, although it has a slightly higher sulfur content than WTI. Typically, WTI is ideal for gasoline, while Brent is ideal for diesel fuel.

Meanwhile, countries like Canada, Venezuela, and Russia, among others, produce sour crude oil that has a higher sulfur content. Lower-quality crude oil is cheaper to produce but more difficult to refine.

Global Oil Production & Consumption

Established in Baghdad, Iraq in 1960, the Organization of the Petroleum Exporting Countries (OPEC) is comprised of 13 nations that collectively control about 80% of the world’s proven oil reserves. These countries supply roughly half of globally exported crude oil by value. However, this percentage has been steadily declining in recent years. Outside of OPEC, the United States and Russia possess the largest reserves.

The following graphics show the top 10 oil producers/consumers and their share of the world’s total oil production/consumption, according to the most recent data from the U.S. Energy Information Administration (EIA).

In 2020, the world’s top five exporters of crude oil were Saudi Arabia (17.2% of global exports), Russia (11%), Iraq (7.7%), the United States (7.6%), and United Arab Emirates (7.2%). Russia is still a top exporter. However, it’s worth noting that the country’s oil exports by value declined more than 40% from 2019-2020.

In addition to oil, Russia is a major producer, consumer, and exporter of coal and natural gas, as well as the various refined products made from them. According to the IEA, Russia’s fossil fuel industry produced the energy equivalent of 11 billion barrels of oil in 2019.

Currently, Europe and China account for about 90% of Russia’s total exports. Within Europe, dependency on Russian oil and gas varies by country. By comparison, only 3.5% of the United States’ oil imports came from Russia in 2021—the highest percentage in over two decades (but not the highest value).

U.S. Oil Production & Consumption

Since 2008, the value of U.S. oil imports has fallen over 62% due to a surge in domestic production. Currently, about 35% of U.S. supply comes from international partners, compared to about 65% produced domestically.

Meanwhile, U.S. oil exports have increased nearly 3,000% after the United States ended a four-decade-long ban on oil exports, dating back to the Arab Oil Embargo of 1973. In other words, the United States is now less dependent on other countries for our oil and is becoming a more important exporter of oil to other countries.

The United States is becoming increasingly energy-independent. However, it continues to import lower quality oil from countries like Russia to make use of its existing infrastructure. According to Ryan Kellogg, a professor at the University of Chicago, the U.S. spent billions of dollars on its refining capacity in the 1990s and early 2000s. As such, it doesn’t make economic sense to let that equipment sit idle. In addition, domestic production is not yet at the level where the U.S. can stop importing heavier, sour oil from other nations.

What Affects Oil Prices?

Like other markets, supply and demand determine oil prices. Anything that affects either side of this equation can send prices up or down.

Historically, geopolitics have played a significant role in the direction of oil prices as producers jockey for position. In addition, changes in the global economic outlook can affect supply and demand.

Oil prices can also move in tandem with financial markets. For example, it’s not unusual to see oil prices drop when equity markets decline. In the futures market, speculative bets by traders can also influence prices.

What’s Responsible for Recent Volatility in Oil Markets?

In early 2020, demand for oil dropped sharply as Covid-19 cases surged globally. Government-issued lockdowns stopped people from driving to work, grounded airplanes, and slowed the pace of global trade. As a result, oil prices fell to their lowest levels in decades.

Oil prices have been on the rise as the global economy recovers from the effects of the pandemic. However, the Russia-Ukraine crisis exacerbated already inflated oil prices and is largely responsible for the uptick in volatility more recently.

When Russia invaded Ukraine in late February, the price of oil surged to over $110/barrel, a 15% increase from the previous week. Russia is the world’s third largest producer of oil after the United States and Saudi Arabia. Indeed, sanctions on Russian exports and reluctance to purchase Russian oil sent prices upward.

The United States is more insulated from the crisis that other countries—Europe, for example. Still, the shift in global trade flows has caused a lot of market uncertainty over the last month. Indeed, the Biden administration has banned Russian oil imports. However, this most recent price drop was due to the realization that Europe wouldn’t be abandoning Russian oil just yet, easing pressure on the rest of the world’s oil supply for the time being.

The Relationship Between Oil and Gas Prices

Gas prices have also been on the rise due to record-high inflation levels. But many consumers are wondering why the recent decline in oil prices hasn’t affected prices at the pump yet.

You may not be as affected by rising gas prices if you drive an electric vehicle or gas is a small part of your budget. However, the average American spends anywhere from 2-4% of their overall income on gasoline, and for lower earners a much greater percentage. When gas prices go up, these Americans then have less money to spend on other goods and services. This, in turn, can affect the broader economy.

Although oil prices influence gas prices, it’s not a cut-and-dry relationship. Retailers set their gas prices based on replacement cost. Therefore, there’s typically a lag between changes in oil prices and changes in gas prices.

When wholesale prices increase, retailers will often take a hit to their margins first to remain competitive with other retailers nearby. Similarly, retailers may hold their gas prices steady despite a lower delivery cost to make up for the margin they lost during the price increase.

In addition, there’s usually a drop in demand when gas prices spike as consumers top off their tanks in anticipation. This slowdown in demand affects when retailers schedule their next fuel delivery—another reason the prices of oil and gas don’t always move in tandem.

What Does All of This Mean for Your Investments?

Though it’s impossible to predict the future, we’re likely to see more volatility as the war in Ukraine continues. And while we’re currently experiencing a particularly painful period as prices rise and our account balances fluctuate, the good news is these things tend to be cyclical. Investors have historically been rewarded for staying the course—especially when it feels most uncomfortable to do so.

If you’re an ESG investor, you will not be participating in the rising stock values of oil and commodities companies due to the supply squeeze. However, I believe the long-term outlook for companies that incorporate ESG practices into their operations is still strong, as I write in my most recent op-ed for CNBC. You can read the full article here if you’d like to learn more.

As always, please feel free to contact us if you’d like to discuss any of this further.

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5 Inspiring Statistics About Women and Investing

Investment Management, Women and Money / /
Women and Investing

As a financial advisor who works primarily with women, I’m all too aware of the gender investment gap. Not only are women paid less than men on average (and therefore have less money to invest), but many women aren’t confident in their investment abilities. Unfortunately, this can result in lower returns—a contributing factor to the retirement savings shortfall.

That’s the bad news. The good news – there’s evidence that this gap may be closing. Fidelity recently released its 2021 Women and Investing Study, which provides some interesting insights into women’s attitudes and behaviors about investing. The study’s key finding: more women than ever are taking a seat at the investing table.

Here are five inspiring statistics about women and investing that may make you feel more optimistic about your financial future:

#1: 67% of women are now investing outside of retirement compared to just 44% in 2018.

When it comes to closing the gender investment gap, younger women seem to be leading the charge. Indeed, 71% of Millennial women invest outside of retirement, according to Fidelity. But, the numbers are encouraging among older generations as well. Two-thirds (67%) of Gen X women and 62% of Baby Boomers say they invest outside of retirement.

So, what’s holding women back from closing the gap completely? According to Fidelity, 70% of women say they need to know more about picking individual stocks. In addition, 65% of women said they’d be more likely to invest or would invest more if they had clear steps to do so.

#2: When women invest, we see better results than men do.

Based on an analysis of more than 5 million Fidelity customers over the last ten years, women outperformed their male counterparts by 0.4% annually, on average. According to a recent CNBC article, there are many reasons women tend to be better investors than men.

For one thing, women trade less, which helps avoid unnecessary fees and many of the pitfalls associated with market timing. In addition, women tend to invest more consistently, meaning we like to have a strategy in place and follow it. Interestingly, none of these reasons has anything to do with knowing how to pick the right stocks. Instead, they require discipline.

#3: 9-in-10 women plan to take steps within the next 12 months to help their money work harder to grow.

Nearly 70% of women surveyed said they wish they had started investing their extra savings earlier. On the bright side, 90% of women say they plan to take steps to remedy this situation in the next 12 months. Specifically, their goals include:

  • Improving their financial literacy.
  • Creating a financial plan.
  • Reaching out to a financial professional.
  • Investing more of their savings.

#4: 64% of women would like to be more active in their finances, including investment decisions.

Perhaps some of the good money habits we developed during the pandemic contribute to these inspiring statistics about women and investing. For example, half of the women surveyed said they have been more interested in investing since the start of the pandemic. And 42% of women say they have more money to invest than they did pre-pandemic.

However, despite women wanting to invest more, the vast majority still don’t feel confident when it comes to long-term planning and investing for the future. Only 19% of women feel confident selecting investments that align with their goals. Meanwhile, only 31% feel confident planning for financial needs in retirement. (If this sounds like you, here are 5 Ways to Boost Your Financial Confidence.)

#5: 71% of women said they felt more confident once they set up a financial plan.

An overwhelming theme throughout the Fidelity study is that women feel better when they have a financial plan. Yet, though interest in investing is on the rise, less than half of women say they would know what to do if they had $25,000 to invest in the stock market today.

Unfortunately, this lack of confidence goes beyond women’s financial lives. More than a third of women said their financial situation keeps them up at night at least once a month. The primary culprit? Their long-term finances.

If these statistics about women and investing have inspired you to take the first step towards securing your financial future, a trusted advisor can help.

If your finances are keeping you up at night or you simply want a clear path towards your financial future, working with a trusted financial partner can help. In fact, 86% of women agree that having their investments managed by professionals makes life less stressful, according to Fidelity.

Curtis Financial Planning can help you develop a plan for your future and align your investments with your goals and values. To get started, please schedule a call.

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