A strong US dollar has been terrible for the returns of international funds. If you’re thinking of giving up on those funds, now is probably a bad time to do so.
Like markets, currency exchange rates rise and fall over time. Right now, the US dollar is rising. At some point in the future the dollar will peak versus other currencies, and eventually fall. Anyone who sells now, will kick themselves for missing out. Why? It’s no different than selling after the stock market falls. Selling at the bottom rarely turns out well. Continue Reading…
No other asset class lives up to the long term returns of stocks. Despite that fact, most investors don’t stick it out long enough during the periods when stocks perform poorly and the big losing years tend to drive investors insane.
What happens when you combine a six year bull market in stocks with low interest rates and a persistent view the Fed will raise rates soon? You get a lot of speculation that stocks and bonds might both fall in value. The big concern lately is how will investors react if stocks fall and see the bond portion of their portfolio fall too.
It’s safe to say Buffett and Munger came through, as usual, with a wealth of information in this year’s Berkshire letter. Before I break down the letter into the many select quotes and lessons, there is a greater lesson throughout.