Why Staying The Course Is Very Important

One of the important traits of successful equity investors is the simple act of being patient with investments. To put it another way, building real wealth with stocks requires the ability to be calm when markets turn volatile and focus on the long-term goal. The age-old adage goes that time in the market is more important than timing the market.

In the past few months US markets have turned volatile and in the past three days major indices have declined significantly. Though it may be tempting to sell everything and then buy back later at cheaper prices, it is wise to stay strong and not sell out. This is because while selling is easy when markets fall buying back is difficult since no one knows when the markets will turn around. The dramatic decline and the sharp recovery in US equities early last year shows the importance of staying the course. The simple chart below vividly shows the astonishing difference in returns between staying invested and missing the five best days of the S&P 500:

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Source: Morningstar via Bourbon Financial Management

Related: ETF:

  • SPDR S&P 500 ETF Trust (SPY)

Disclosure: No Positions

IRA Contributions and Deductions Guide for Year 2021: Infographic

The contribution limits for various retirement plan accounts such as Traditional IRA, Roth IRA, etc. for 2021 are shown in the infographic below. In addition, the chart also shows the rules for deductions. As the deadline for tax filing for tax year 2020 approaches soon, this guide is a useful tool to plan for this year.

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Source: Equity Trust

Checking on the Four Major Australian Banks

The four major Australian banks – Commonwealth Bank of Australia, Westpac, Australia and New Zealand Banking Group and National Australia Bank – have had a tough past few years. With most of the troubles over, some of these stocks are in recovery mode from the hard and deep slump. Let’s take a quick look at the performance so far this year and in the past five years.

Australian bank stocks’ price return year-to-date:

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Australian bank stocks’ price return in past 5 years:

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Source: Yahoo Finance

Westpac was the worst performer in the past 5 years. However this year it has soared with a return of over 37% so far.

The current dividend yields and the tickers on the US market of the major Aussie banks are listed below:

1.Company: Westpac Banking Corp (WBK)
Current Dividend Yield: 3.38%

2.Company: Australia and New Zealand Banking Group Ltd (ANZBY)
Current Dividend Yield: 1.96%

3.Company: National Australia Bank Ltd (NABZY)
Current Dividend Yield: 2.03%

4.Company:Commonwealth Bank of Australia (CMWAY)
Current Dividend Yield: 4.25%

Note: Dividend yields noted above are as of May 7, 2021. Data is known to be accurate from sources used. Please use your own due diligence before making any investment decisions.

Disclosure: Long NABZY and WBK