In days of yore, navigational maps were often illustrated with dragons and sea monsters, indicating that danger was afoot on the high seas. The imagery may have been mythical, but the risks were real enough, especially for travelers who failed to equip themselves for the journey. To this day, risk and reward remain tightly connected for those venturing into our global markets.
As we covered in our last piece, indexes have their uses. They can roughly gauge the mood of a market and its participants. If you’ve got an investment strategy that’s designed to capture that market, you can see how your strategy is doing in comparison… again, roughly. You can also invest in an index fund that tracks an index that tracks that market.
Since nearly every media outlet on the planet reported the news, you probably already know that the Dow Jones Industrial Average topped 20,000 for the first time on January 25, 2017. However, when a popular index like the Dow is on a tear, up or down, what does it really mean to you and your investments?
When it comes to buying or selling your home, most of us already know that the price depends on three things: location, location, location. Asset location is a similar, if less familiar rule that applies to your investments. By managing asset location within your portfolio, we help you keep as much of your wealth as possible – even after the tax man takes his cut.