SAN FRANCISCO, Calif. (KRON) – Stocks stumbled early but the markets made a comeback before the closing bell.
This as investors bite their fingernails while mulling how the Russian invasion of Ukraine will impact their portfolios.
“One thing that’s impossible for anyone to do is to time the market,” William Huston Jr. said.
That’s the wrong approach to liquid assets like stocks.
“Better to position yourself ahead of time with an awareness of where things are. Invest in indexes and companies you expect to outperform over the long term. And, then take an average price point on a month-to-month basis,” Huston said.
William Huston Jr. is the CEO and founder of Bay Street Capital Holdings along the Peninsula, an investment firm focusing on building portfolios that reduce volatility.
“The S&P over the last 40 years is up, you know, nine to 10% on average. So, instead of attempting to catch wild, wild market swings on the up or downside, better to say I’m going to make 10% a year. I’m going to take a diversified portfolio approach to this,” Huston said.
Huston says banks, utilities, and insurance companies all typically perform well when interest rates increase and adds the crisis in Ukraine likely won’t have a long-term impact on Bay Area investors.
“Ukraine as a country is not in a lot of indexes. So, although it’s an unfortunate situation from a stock market performance standpoint, especially for U.S. investors that tend to have a lot of U.S.-based equities in their portfolio, it’s not something that’s going to lead to a large correction over the long-term,” Huston said.
As for cryptocurrencies, he says to be cautious.
“A four or 5% allocation in something like that would be ok. You know, you don’t want to take a significantly larger bet than that because if you’re not watching it every day, it’s not your profession, it’s not your career, you’re effectively investing in something that you don’t understand,” Huston said.
Now is not the time to complicate matters.