Un-advertised facts
about the Stock Market

Corporate incomes fund the huge advertising budgets of brokerage houses. Resulting profits are generated from commissions, fees, and charges within the investment portfolios that are created through the sales of stocks, bonds, mutual funds (largely), REITS, and other "registered securities".

An important fact appeared in an April 15, 2015 article written by Stephen Goldberg in Kiplinger Magazine:

Thanks primarily to their rock-bottom costs, index funds have outperformed roughly two thirds of actively managed funds across all kinds of markets — and they'll almost surely continue to do so. What's more, picking the one-third of funds that will beat their indexes is extremely difficult; many argue that it is impossible.

In addition, mutual fund performances, as reported, hardly reflect earnings for the average investor (continue reading).

When markets decline it is evidenced in corresponding index funds as in 1990, 2000, and 2008. For persons in and near retirement the paper losses were depressing. For retirees taking income from their portfolios the losses realized were devastating.

If one remained fully invested, it took around five and a half years just to return to a break-even value following the 2008 "market adjustment". Financial experts refer to this as volatility risk. It is astounding that so many investors have not been made aware of the Sequence-of-Returns principle by their stock and bond salesman. If you happen to be unfamiliar with this terrifying risk, read my article on this website.

According to the 2016 Dalbar Report, the average investor in asset allocation mutual funds (those that "diversify" your money among a variety of asset classes) earned only 1.65% per year over the previous three decades!

The report disclosed that the average investor in equity mutual funds averaged only 3.66% per year, beating inflation by only 1% per year after stressful volatility roller-coaster rides and sleepless nights.

The report concluded: The results consistently show that the average investor earns less — in many cases, much less — than mutual fund performance reports would suggest.

Safety, the protection of assets, together with the reliability of future income, is critical for employed and retired Americans today.

NOTE: The information on this page neither applies to, nor detracts from, investing long-term in blue-chip stocks for the purpose of earning steady dividend income.

Click here for more information.

This website is provided for informational purposes only and is not intended to provide any tax, legal, financial planning, insurance, accounting, investment, or any other kind of professional advice or services. Nothing on this website should be construed as an offer to sell or a recommendation for any security, insurance policy, or investment strategy. For your information this Website may provide links to other websites that are not operated by Stewart Ogilby. Those links do not mean that Stewart Ogilby necessarily endorses, approves, or sponsors any products or information available at the linked site. Before purchasing any financial product be sure to do your own due diligence and you should consult with an appropriate tax or legal professional before taking action based on any suggestions or information on this site. You alone are solely responsible for determining whether any financial or insurance strategy, product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. By contacting Stewart Ogilby you may be offered insurance products by an agent licensed in your state. Annuity product guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Annuity riders may be available for an additional annual premium that can provide additional benefits and income guarantees.