Investments: Seeing The Big Picture

Statistics show that stocks, over the last 50 years, have outperformed bonds, Treasury Bills and real estate.  However, despite their attractive performance, stocks have a drawback:  Their returns are the most volatile.

The market, while achieving new highs in every decade since the 1930s, also experiences setbacks as deep as 40-50%.  On average, the S&P 500 has fallen in one of every four years.  Yet in 95% of all five-year spans, the index has posted positive results.

So, to invest with Check Capital Management, you should see the big picture, namely, that the superior performance of stocks means additional volatility.  But we will help you prepare for it.  First, commit to the market only money you don't need to touch for the next three-to-five years.  This discourages you from pulling out after a bad year or two, which—historically—is just when the market does best.  Second, cover your shorter-term needs, such as living expenses, with assets invested in CDs and bonds.