Unless you have a crystal ball, the history of the markets leads us to two clear conclusions:
1. Over the long term, markets demonstrate a proven and continuous upward trend.
2. All market downturns in history have been temporary – without exception.
No one can predict market fluctuations. Those who try invariably jump into and out of markets at the wrong time for the wrong reasons, and end up missing out on periods of exceptional returns. What the industry calls “market timing” we call “speculation”..
Taxation eats away at investors’ returns, especially in environments where markets are generating fewer gains. We believe that it is important to make use of the various tools and tricks for minimizing the negative impacts of taxes on interest, dividend and capital gains income.