Breaking Bad Advice

Investing Basics: Starting Prices and the Sequence of Returns


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So, you got a certain percentage return last year on your investments. Is it good? Bad? Ok? Well, it depends. Investing is fundamentally about buying low and selling high, because that will determine your future portfolio returns. It sounds simple, but it isn’t always easy. In today’s podcast, we discuss the importance of both starting prices and an investor’s sequence of returns. Starting prices matter, which is another way of saying that current prices heavily influence future returns. But what can be even more important are the sequence – or timing – of those returns, as they may actually determine whether your investment objectives are reached. Take a listen to learn more!

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Breaking Bad AdviceBy Joel Hooper

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