Investing Then Versus Now
In its yearly publication, Credit Suisse Global Investment Returns Yearbook 2017, the Swiss-based global financial services group tells the story of ‘The Great Transformation’ – how industries were weighted in the U.S. stock markets at the turn of the 20th century — in 1900 and now again in 2017. The U.S. stock market back in 1900, was dominated by one industry: railroads. The listed railway companies made up 63% of the stock market value in the U.S. A good 117 years later, railroads account for less than 1% of the U.S. stock exchange value and almost zero on the London stock market.
This change in stock market trends is not that surprising given the fact that in 1900, it wouldn’t be another three years until the Ford Motor Company was incorporated and another eight years until Henry Ford would launch the Model T, the car that heralded the era of the U.S. mass automobile market.
“Invention and innovation have changed the industry landscape so much that from today’s perspective it’s difficult to grasp that the listed companies in 1900 included the world’s biggest candle maker and the global leader in match manufacturing at the time.”
Buying And Selling Securities
Years ago, if you wanted to make a trade you would need to call your stockbroker and place an order. The commission rates to buy or sell stocks was pretty much fixed and high due to a lack of information and alternatives. Currently, this is not the case.
Many brokerage firms and other custodians offer apps to allow investors to track their investments using their phones. Alerts can be established on various holdings and so much more. iInvest® has a free app to send client’s push notifications when our company sends out a stock market alert or newsletter. Technology has also armed both individual investors and investment advisors with the tools to perform cutting-edge research and analysis on investments and to help manage portfolios.
One of the largest innovations of the past 10 years has been the advent of the “robo advisor” — an investment tool that is used to remove the human emotional element from investment practices. Firms like Betterment and others have used technology to allow them to construct and manage client portfolios using smart algorithms. Taking the human element out of the investing equation can drastically lower the cost of investing and increase overall returns over time.
iInvest® utilizes and invests in today’s best investment technology solutions, allowing us to offer:
- No investment minimums
- Low advisory fees
- No transaction costs
- Smart rebalancing
- Robust financial planning tools
- Tax loss harvesting
- And more!
This technology promises to continue to revolutionize the investing landscape in the years to come.
If you want to know more about iInvest® contact us at (423)-530-7155. iInvest® is a full-service advisory firm who utilizes and invests in today’s best investment technology solutions, allowing us to offer no investment minimum, low advisory fees, no transaction costs, all built for better returns. We have very robust financial planning tools for free to our clients, tools many fee-only financial planners charge $100’s for. iInvest® provides an awesome user interface and experience on all devices. We implement the latest in smart rebalancing automation and sophisticated tax loss harvesting, tax coordinated portfolio management tools which historically increase overall performance for our client portfolios.
Opening an individual brokerage or IRA account, rolling over a 401K or IRA is made simple and streamlined with limited paperwork or snail mail.
iInvest® has a free app to send client’s push notifications when our company sends out a stock market alert or newsletter. Check us out – our fees are below the nationwide average and very transparent, yet our performance and customer service platforms are designed to be better than average no matter what your age. iInvest® has an optional trademarked Tactical Asset Allocation strategy for our clients called TacticalSHIFT®. It is designed to be a bear market safety net during times of high stock market risk, designed especially for pre-retirees and retirees who have saved up significant retirement savings and cannot afford the negative consequences of poor decisions due to human emotion.
Written by Craig Dillon
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