By Steve Leininger, CPA/PFS
Every now and then the markets teach us an unpleasant lesson: Not all stocks or types of stocks (e.g., domestic or international) go up and down at the same time. We design portfolios with that in mind to try to avoid perfect correlation. When the stocks we own go up, especially in relation to stocks other people own, we call that being smart and savvy investors. But when the stocks we own do worse than stocks owned by others, we may get upset. We may even be tempted to make big changes to our portfolio in an attempt to get the better returns that others seem to be enjoying. But making investing decisions based on what’s happening in the short term is a bad idea.