Riding High
The S&P 500, a benchmark for the U.S. stock market, is currently hovering near its all-time high. For many investors, this can be a source of both excitement and anxiety. The common question arises, “Is now the right time to invest, or should one wait for a potential dip?” Surprisingly, data from JP Morgan suggests that investing when the market is at its peak has historically led to stronger returns for time periods ranging from 6 months to 3 years as compared to investing on any given day. This insight challenges conventional wisdom and underscores the importance of staying invested.
Market timing is an alluring strategy. The concept of “buying low and selling high” tempts many investors to wait for a better time to invest, but the reality is far more complex. The stock market's movements are influenced by countless factors, many of which are unknowable. Making correct predictions about the near-term direction of the stock market is nearly impossible, and attempting to time the market often leads to missed opportunities and suboptimal returns.
This counterintuitive finding highlights a critical principle of investing: the power of time in the market, not timing the market. Investors with longer investment horizons can particularly benefit from this approach. By remaining invested through market fluctuations, patient investors can capture the compounding growth that occurs over time. Throughout its history, the U.S. stock market has demonstrated resilience and a strong upward trajectory, rewarding those who stay the course.
At First Fiduciary, we don't try to time the market. Instead, we identify and acquire high-quality companies that can create value for shareholders over time. Our investment philosophy is rooted in the belief that enduring businesses with strong fundamentals will generate attractive long-term returns, regardless of short-term market fluctuations. By focusing on long-term growth and maintaining a diversified portfolio, we aim to deliver consistent performance and peace of mind to our clients.
Articles We Enjoyed:
Corporate Uniforms
The Economist discusses the pros and cons of professional uniforms.
Stock Market Disappearing
As companies stay private longer, the number of public companies shrinks.
AI Hiring
Artificial intelligence chatbots have made the hiring process much trickier for job seekers.
Boat Mural
A boat owner was forced to put a fence up to hide his boat. He had other plans.
Raw Milk Black Market
Despite the health risks of drinking unpasteurized milk and being illegal in most states, raw milk has experienced a surge in popularity.
Notable Reads:
The Wright Brothers
by David McCullogh
McCullough captures the unparalleled ingenuity and perseverance of Orville and Wilbur Wright as they changed the course of human history with their flying machines. The book stands as a testament to the Wright Brothers’ remarkable achievements, serving as an inspiring reminder of what can be accomplished with equal measures of creativity and dogged determination. – AG
The Sun Also Rises
by Ernest Hemingway
Hemingway offers a careful exploration of the Lost Generation’s post-WW1 disillusionment. His minimalist prose paints a raw and dark picture of a group of expatriates as they self-medicate from the cafes of Paris, France, to the bullfighting rings of Pamplona, immersing the reader in a journey that explores the depths of human frailty. It’s hard to believe Hemingway was only 27 when this, his first novel, was published. – AG
Slaughterhouse-Five
by Kurt Vonnegut
An anti-war novel released during the Vietnam War, the story draws heavily from the author’s own experiences as a soldier in World War 2. With his dry and direct writing, Vonnegut paints war as both inevitable and absurd, highlighting the senselessness and arbitrary cruelty that pervades it. The quirky time travel elements of the story add dark humor while serving as a metaphor for the inescapable loop of war’s devastation. – AG
Restaurant Review:
ROOH Chicago
Chicago, IL
Rooh Chicago offers a delightful dining experience with a great mix of traditional Indian flavors and modern cooking techniques. The restaurant has a stylish and welcoming atmosphere, with a menu full of flavorful and beautifully presented dishes. The cocktails are thoughtfully made and complement the food nicely. Our party particularly enjoyed the Avocado & Chickpea Bhel and the Sweet Potato Chaat. Whether you’re familiar with Indian cuisine or trying it for the first time, Rooh Chicago is a great spot for a memorable meal. – AG
The data contained within this newsletter is for informational purposes only. The information contained herein should not be considered investment, tax or legal advice.
This newsletter contains links to external third party websites that are not affiliated with First Fiduciary Investment Counsel. FFIC does not control or direct the content of the information contained on these websites. Information contained on the third-party website is relevant on the date the newsletter was published but may be changed or revised by the third parties without the knowledge of and/or notice to FFIC.
Statistics and other information have been compiled from various sources. First Fiduciary Investment Counsel believes the facts and information to be accurate and credible but makes no guarantee to the complete accuracy of this information.
Past performance does not guarantee future results. The mention of securities or types of securities in this newsletter should not be considered as an offer to sell or a solicitation to purchase or sell any securities mentioned. Neither First Fiduciary nor the authors hold positions in any of the stocks mentioned unless otherwise stated.
First Fiduciary Investment Counsel, Inc. is a registered investment adviser with the Securities and Exchange Commission. A more detailed description of the company, its management and practices is contained in its firm brochure document, Form ADV, Part 2. A copy of this form may be received by contacting the company at: 6100 Oak Tree Blvd., Suite 185, Cleveland, OH 44131; Phone: 216.643.9100; Email: ffic@firstfiduciary.com.