Stock markets started out strong in 2026. US small-caps and international stocks have led, while US large-caps and bonds have also increased.
Invest Now!
Last month, we reached out to you, our clients, for the one piece of financial advice that you would share with someone else or your younger self. Thank you to everyone who took the time to respond!
The results were interesting: the vast majority of responses give the same advice – start investing as early as possible. The following chart from JP Morgan Asset Management shows the power of compound interest over time:
Cash, when adjusted for inflation, actually lost value over the past 30 years. While it’s necessary to keep a certain amount of cash on hand for ongoing expenses and short-term needs, it is not an attractive long-term investment.
On the other hand, investing in stocks has its own set of challenges. Following the financial crisis in 2008, stocks barely made anything over the previous 13-year period. But 20 years later, in hindsight, we can see the benefits of committed investing over the long run. As investors, time is on our side. The longer we invest, the more likely we are to make positive returns on our investments.
Investors who start early and continue adding to their portfolio over time give compounding interest the maximum opportunity to work in their favor. So, if you didn’t start investing 10 years ago, the next best time to start is now! If you or someone you know needs help getting started, let’s talk.
