Wealthfront

This week our CIO Burt Malkiel spoke with Jeff Sommer of The New York Times to discuss his latest analysis showing that the best market days often occur very close to large market declines. What should investors take away from this? As Burt says in the article, “Don’t kid yourself that you’re smart enough to do better than just buying and holding the market.” And if you’re thinking about making changes to your portfolio during volatility, remember that “You’re much more likely, when your emotions get hold of you — both on the upside and the downside — to do the wrong thing.” Read more on the analysis +  Burt’s guidance on why investors should ignore short-term market movements and keep investing in a broadly diversified portfolio  👉 https://lnkd.in/gE9cbDtV -- Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Links to other server sites are provided for convenience only.

From the April 2 "Liberation Day” tariff announcements to April 8, the S&P 500® dropped by about 12%. Shortly after, it rebounded, hitting a 17-year single-day best and a new high by June. This rapid turnaround highlights how difficult it is to to the time market and why it’s important to stay invested during down days. To examine how costly pulling out of the market during a decline can be, Wealthfront’s Chief Investment Officer, Dr. Burt Malkiel, and I examined US stock market returns from Kenneth French’s data library over the 50-year period from June 1, 1976, to May 31, 2025. Our analysis assumed a monthly $100 investment into the broad US stock market, with uninvested cash earning the risk-free rate (also from Kenneth French’s library). Here's what we found: - The 10 best market days in the last 50 years all occurred following steep market declines. Miss these rebound days, and returns significantly erode. - Selling at a 10% decline and waiting for a full recovery over 50 years would cost an investor over $1.5 million. - Even re-entering after just a halfway recovery would cost an investor over $1.2 million. In short, you're better off not changing your investment strategy during a downturn. A disciplined buy-and-hold approach is your best bet for long-term success. Read the full analysis on our blog: https://lnkd.in/e3T5VJza Disclosures: This communication is from an employee of Wealthfront Corporation. All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. The analysis presented is general educational information and market commentary provided for illustrative purposes only, and does not account for taxes, fees, inflation, or other factors that would impact actual returns, and does not reflect any client's actual experience. Please see the blog for important disclosures. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser.

This spring, the S&P 500® dropped about 12% from April 2nd to April 8th, following tariff news. Then, on April 9th, the S&P 500® had its best single-day gain in about 17 years. What’s the takeaway? It’s extremely difficult and costly to try and “buy low, sell high.” We looked at the broad US stock market over the last 50 years, and it turns out that the best days often happen close to big declines. This underscores how quickly positive rebounds can happen. The cost of market timing can be staggering. We looked at the cost of timing the market while investing $100 a month in the broad US stock market for the last 50 years. Assuming you sell every time the market dips 10% below the one-year peak, and jump back in after a full recovery, you get a much better result by staying in the market. In fact, the "cost of market timing" over 50 years was over $1.5M. Our CIO Burt Malkiel and VP of Investment Research Alex Michalka did an analysis on why a buy-and-hold approach is more likely to work – here are some of their findings: https://lnkd.in/g27ByWFG #investing #marketvolatility #passiveinvesting #longtermwealth --- Nothing in this post should be construed as investment advice, an offer, recommendation, or solicitation to open an account or to buy or sell any security. Investing involves risk including the possible loss of principal and past performance does not guarantee future results. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Brokerage products and services are provided by Wealthfront Brokerage LLC, Member FINRA/SIPC. 

If an EV is on your radar, it could be worth moving sooner rather than later before the Sep 30 tax credit deadline. Here’s what you need to know 👇 —------- Nothing in this post should be construed as investment or tax advice. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Brokerage products and services are provided by Wealthfront Brokerage LLC, Member FINRA/SIPC. 

The Fed is predicted to hold rates steady again this week - what does that mean for consumers’ money right now? — Nothing in this post should be construed as investment advice, an offer, recommendation, or solicitation to open an account or to buy or sell any security. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser.

The Fed has a meeting on 7/29, and odds are slim that interest rates will be cut, according to Investopedia.  There has been continued speculation this year about when and if the Federal Reserve will cut rates. 💡 How does the fed funds rate affect consumers? The federal funds rate is the overnight rate at which banks lend money to each other, serving as the basis for most consumer interest rates. This influences everything from mortgage rates to personal loans, car loans, and the rate banks pay on your deposits. It can be tempting to tweak your investing and saving game plan based on the news, but is changing your strategy based on interest rate changes a smart move?  Read more about how to think about your strategy on our blog. https://lnkd.in/gJhCqekq -- Investing involves risk including the possible loss of principal. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Brokerage products and services are provided by Wealthfront Brokerage LLC, Member FINRA/SIPC.

Here are some big Wealthfront updates in 60 seconds. What’s your favorite? -- Nothing in this post should be construed as investment or tax advice, an offer, recommendation, or solicitation to open an account or to buy or sell any security. Investing involves risk including the possible loss of principal.  Past performance does not guarantee future results. Investment advisory services provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Brokerage products and services provided by Wealthfront Brokerage LLC, Member FINRA/SIPC

Wealthfront just keeps getting better. The first half of 2025 was no exception. We made some exciting improvements to our products - from lower fees to the release of long-anticipated new features. Here’s a look at what we’ve shipped recently. More here: https://lnkd.in/euXetruu —------- Disclosures: Nothing in this post should be construed as investment or tax advice, an offer, recommendation, or solicitation to open an account or to buy or sell any security. Investing involves risk including the possible loss of principal.  Past performance does not guarantee future results. Investment advisory services provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Brokerage products and services provided by Wealthfront Brokerage LLC, Member FINRA/SIPC, not a bank. 

There’s no one-size-fits-all answer. Here’s how to think about the right path for you: https://lnkd.in/ezSq6HfH -- Investing involves risk including the possible loss of principal. Investment advisory services are provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Brokerage products and services are provided by Wealthfront Brokerage LLC, Member FINRA/SIPC.