Sports fans know big swingers—those home run hitters who occasionally launch 480 foot homers but more frequently swing and miss. Met fans might think Dave Kingman; Yankee fans Chris Carter. Investors can’t afford frequent swings and misses. We wholeheartedly believe that investors should hit for average as opposed to power.
Everyone knows the stock market got smoked in 2008. Indeed one of our favorite funds the Parnassus Core Equity Fund (PRBLX) lost some 22.8% that year yet over the trailing 10 years (2008 included) has averaged 9%. While past performance is no indicator of future results, this mutual fund is a consistent performer and the type of investment growth investors should consider.
We consistently meet investors who have been sidelined since 2008. Call it fear, call it prudence but the mortgage crisis scared many investors to the money market and there they remained. This mistake has been much costlier to scores of investors’ portfolios than any bear market.
Everyone wants the next Amazon or Facebook but what they NEED for the bulk of their portfolio are investments like Parnassus or the S&P 500 exchange traded fund (SPY), consistent performers that not only allow you to sleep at night but, more importantly, enable you to remain invested during rocky years such as 2008.
Please note that all data is for general information purposes only and not meant as specific recommendations. The opinions of the authors are not a recommendation to buy or sell the stock, bond market or any security contained therein. Securities contain risks and fluctuations in principal will occur. Please research any investment thoroughly prior to committing money or consult with your financial adviser. Please note that Fagan Associates, Inc. or related persons buy or sell for itself securities that it also recommends to clients. Consult with your financial adviser prior to making any changes to your portfolio. To contact Fagan Associates, Please call 518-279-1044.