SCHD: Buy Here And Ride Through The Coming Recession

SCHD is a high-quality ETF that invests in dividend-paying companies across the growth and value sphere. It has also outperformed the S&P 500 over the past ten years.
Despite that, SCHD is not immune to the bear market. However, it still outperformed the broad market in 2022, mitigating the downside impact for its investors.

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Moat Investing: Don’t Ignore Valuations

The September Effect, referring to the historically weak stock market returns observed during the month, once again proved statistically significant. During volatile periods in the market, oftentimes, investors will look to seek shelter in companies that exhibit a quality factor tilt with the expectation that they will prove more resilient. Changes to a company’s moat rating are not a common event. The competitive advantages required to obtain a wide moat rating within Morningstar’s framework are difficult to obtain and durable in nature.

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Three Common Mistakes Investors Make And How To Avoid Them

Summary: Chasing performance, fear of missing out, and focusing on the negatives are three common mistakes many investors may make. History shows investors who overreact to near-term market events typically end up doing worse than if they stuck to their long-term plan. Just having an awareness of these typical pitfalls may help improve your portfolio’s performance.

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