Can't See Past Our Noses
In 2023, seven stocks—dubbed the “Magnificent Seven” (Apple, Alphabet, Microsoft, Amazon, Meta, Tesla, and Nvidia)—took the spotlight with remarkable gains, soaring by an average of 93%! However, it’s surprising to note that despite this strong performance, these stocks have merely returned to their peak from 2022.
It’s important to remember investing is a journey and not a one-year snapshot. It’s crucial to not fixate on short-term performance based on arbitrary timeframes. Our RiskFirst® process helps investors stay focused on their long-term goals. We use clear benchmarks to define success to steer away from emotional investing decisions.
Can’t See Past Our Noses
Source: Bloomberg, Redwood. Data as of 1/4/2024. Date range from 1/6/2020 - 1/4/2024.
- We believe capital preservation is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
Disclosure: This piece is for informational purposes only and contains opinions that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.