8 Timeless Principles of Investing

8 Timeless Principles of Investing

April 04, 2022

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1. Source: Aswath Damodaran, NYU Stern, Federal Reserve of St. Louis (FRED). S&P 500 return includes price appreciation and reinvestment of dividends. Treasury bond return includes coupon and price appreciation. Treasury bill return is a three-month rate. Inflation return is the Consumer Price Index (All Urban Consumers) compounded annual rate. Past performance is no guarantee of future results. Indexes are not available for direct investment. Historical performance does not reflect taxes and fees associated with the management of an actual portfolio.

2. http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html http://www.in2013dollars.com/1926-dollars-in-1936?amount=100

3. The indices mentioned are unmanaged and not available for direct investment. Past performance is no guarantee of future results. All data is sourced from Yahoo Finance and MSCI unless otherwise noted. All data are as of 12/31/14. S&P 500 measures the performance of large capitalization US stocks. The S&P 500 is a market-value-weighted index of 500 stocks that are traded on the NYSE, AMEX, and NASDAQ. The weightings make each company’s influence on the Index performance directly proportional to that company’s market value. Russell 2000 measures the performance of small capitalization US stocks. The Russell 2000 is a market-value-weighted index of the 2,000 smallest stocks in the broad-market Russell 3000 Index. These securities are traded on the NYSE, AMEX, and NASDAQ. MSCI EAFE is a Morgan Stanley Capital International Index that is designed to measure the performance of the developed stock markets of Europe, Australasia, and the Far East. Barclays Aggregate Bond Index (formerly the Lehman Brothers Aggregate Bond Index) includes US government, corporate, and mortgage-backed securities with maturities of at least one year.

4. https://www.usatoday.com/story/money/personalfinance/2017/05/28/3-ways-to-lose-all-of-your-money-in-the-stock-market/102093266/ 5.https://www.thebalance.com/why-average-investors-earn-below-average-market-returns-2388519 6. This example is for illustrative purposes only and does not represent an actual investment. The hypothetical calculation assumes a starting savings balance of $250,000, 6% nominal return compounded annually, 3% annual inflation (resulting in a 2.91% inflation-adjusted annual return), and a salary of $100,000 that increases by 3% inflation each year. Annual contributions are made at the beginning of the compounding period. This hypothetical example does not reflect important factors like the timing of investment returns, taxes, and the fees associated with managing an actual portfolio, which may cause actual performance to vary significantly over time. Past performance does not guarantee future returns.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

These are the views of FMG Suite, LLC, and not necessarily those of the named representative, Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial professional for further information.

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