US Equity Sector Returns By Year: 2007 To 2016

Diversification across sectors is important for well-diversified portfolio. No sector is the best performer each year. So this year’s best performing sector may turn out to the worst one next year. For example, the tech sector is the hottest one this year with soaring stock prices especially for the FANG stocks. Next year they may …

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Total Returns During US Equity Secular Bull and Bear Markets Since 1877

The US equity market is currently in a secular bull market. In a secular bull market stocks keep going up and up until the party ends. Secular bull markets are of course followed by secular bear markets where stocks go nowhere for years. For instance, the first decade of the 21st century was “The Lost …

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Why Diversification is Important for Long-Term Investment Success

One of the simplest and easiest strategies to be successful in equity investing is to diversify. Diversification involves spreading one’s portfolio between various asset types such as stocks,bonds, gold, etc. Within an asset class it is important to hold many types of that asset. For stocks, one can hold US stocks, foreign stocks, small cap, …

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Traditional and Roth IRA Flow Chart for 2017

Below is a neat flow chart to determine if an investor is eligible for a Traditional or Roth IRA contribution for this year and all the rules surrounding them: Note: This post is applicable to US investors only. Traditional and Roth IRA accounts retirement accounts. Click to enlarge Source: Ohanesian / Lecours, Inc Hat Tip: Alpha Architect