The Difference Between Journalists and Investors

The Wall Street Journal recently published an article explaining why investors of all ages should invest more heavily in stocks than bonds.

The premise, in simple terms, was that major market declines are relatively infrequent, tend not to last nearly as long as rising markets, and that people could build significantly more wealth over time by holding higher allocations to stocks.

I agree with many of those points. The issue, and what I think the journalist missed, is that most people cannot emotionally handle watching their life savings fall by 30%, 40%, or 50%. This becomes especially true as people get closer to retirement, or once they are already retired and relying on their portfolio to support their lifestyle.

Of course, there are exceptions. But what good does it do to invest more aggressively if, when the inevitable decline comes, you panic and sell at the worst possible time? Contrary to what you might think, many financial journalists are not experienced investors themselves, and I think that was on full display in this article.

And yes, mathematically speaking, taking more risk has historically provided the opportunity for higher long-term returns. But investing is not purely a math problem. It is also an emotional one.

Seeing your LIFE SAVINGS fall dramatically can completely change the way you think, feel, and respond. A strategy may look perfect on paper, but if you cannot stick with it during a painful bear market, then it was never really the right strategy for you in the first place.

That is why I believe the best investment strategy is not necessarily the one with the highest theoretical return. It is the one that gives you the best chance of staying disciplined through good markets, bad markets, scary headlines, recessions, elections, wars, and all the other uncertainty that inevitably comes our way.

To me, this was what I would call a classic bull-market article. There is almost no chance anyone is writing that piece in the depths of a bear market!

Mid-Year Numbers

Can you believe half of 2026 is already over!? Where does the time go? Here are several key market returns as of June 30, 2026:

S&P 500: 10.2% Nasdaq 100: 20.3% FTSE Global All Cap ex US Index: 12.55% Russell 2000: 19.72% Gold: -7.9% Bitcoin: -27.1%

We have truly had a great start to the year, with above-average returns across several major stock indexes. In fact, if the year had ended on June 30, I think we would have been thrilled with the results! The fact that these gains occurred while markets experienced only modest drawdowns makes the first half of the year even sweeter.

Although it may come across as a humble brag, I also want to highlight the importance of paying attention to relative strength and how leadership changes across different areas of the market over time.

Many of you were invested in gold from late 2024 through late 2025. Gold had an incredible run during that period, but as the enthusiasm became more extreme and volatility picked up, I determined it was time for clients to exit the position.

That proved to be a good move, as gold has been one of the weaker performers so far this year and down nearly 26% from it’s highs.

Toward the end of last year, I also noticed money beginning to flow into international markets. Growth stocks and smaller companies were starting to outperform large-cap and value stocks as well.

As a result, compared with last year, many accounts entered 2026 with significantly more exposure to international stocks and smaller companies. That has certainly worked to our benefit so far. This is also why I do not believe in being a completely static, "pie-chart" investor or advisor.

One of the things I truly did not like during my time at Edward Jones was the way we were often required, largely because of compliance considerations, to allocate money. No matter how poorly international stocks or small companies were performing, we still had to maintain exposure to those areas in the name of "diversification."

To me, it had more of a CYA, or "cover your butt," feel to it than a “do what’s best for the client feel.” Now, diversification absolutely matters. I am not suggesting that we should constantly chase whatever investment performed best yesterday or jump in and out of markets based on short-term speculation. But diversification also does not mean blindly owning everything in the same proportions forever.

As you can see from the returns above, markets are not static. Money does not flow everywhere equally, and different investments, industries, company sizes, countries, and asset classes move in and out of favor over time. I believe it is important to pay attention to those changes and adjust when the evidence supports doing so.

That said, we will never perfectly identify every turning point. Nobody can. But by paying attention to market leadership, relative strength, risk, valuation, and changing trends, we can try to adapt rather than simply sitting still while the world changes around us.

The goal is not to predict the future perfectly. It is to remain humble, flexible, and disciplined as conditions evolve, with the hope of smoothing out the journey and improving results over time.

A Final Thank You

Most importantly, thank you. I know you have many choices when it comes to whom you trust with your financial future, and I do not take that trust for granted. It is a privilege to help you navigate the markets, retirement, taxes, and all the uncertainty that comes with planning for a future none of us can perfectly predict.

My goal has always been simple: to give you thoughtful, honest advice and help you make good decisions through both calm markets and difficult ones. And because many of the wonderful people I work with today came to me through an introduction from an existing client, I also want to thank those of you who have shared my name with others.

If a friend, relative, coworker, or loved one ever mentions that they are worried about retirement, confused about their investments, paying too much in taxes, or simply looking for a second opinion, please feel free to introduce us.

There is never any pressure or expectation. Sometimes a simple conversation can provide a sense of clarity, and sometimes it can make a meaningful difference in someone's financial life.

Thank you again for your collaboration, your confidence, and the opportunity to be part of your journey.

Disclosure:

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise. Bonds are subject to availability, change in price, call features and credit risk.

Asset allocation does not ensure a profit or protect against a loss.

The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. Indexes are unmanaged and cannot be invested in directly.

The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index. Indexes are unmanaged and cannot be invested in directly.

The Russell 2000 Index is generally representative of the 2,000 smallest companies by market capitalization in the Russell 3000 index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index. Indexes are unmanaged and cannot be invested in directly.

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.

Value investments can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.