“What Should I Invest In?”
How to understand your investments and get an idea of what to invest in.
How to understand your investments and get an idea of what to invest in.
I’ve been investing for a long time. And, I’m somewhat of a student of finance and Modern Portfolio Theory. This unscientific exercise reminded me of an historical fact; over long periods of time stocks go up. In the aggregate, patience and time in the market is rewarded. I’m not sure if I would have been better off holding the original portfolio or not, but I’m pleased that our stock holdings have risen these past two years, in spite of the recent downturn.
With the preponderance of economic news on television, on line, and in print, you are well served to separate the wheat from the chaff and spend your precious time on the news that has personal value.
If you pull out your money when the market drops, you lock in the “paper loss” and make it real. Compound the loss with declining to invest during a low price environment. Furthermore, you have another decision to make; when to get back in the market? That is the most difficult question of all.
There is HARD EVIDENCE that jumping in and out of the market is deleterious to your returns.
My earliest teacher of investment principles was my dad. He drilled this FUNDAMENTAL BOND PREMISE into me. It served me well in the beginning and still governs my investing today. The price of a bond moves in the opposite direction of interest rates.
“Wealth is created when natural resources, labor, intellectual capital, and financial capital combine to produce economic growth. As an investor, you are entitled to a share of that economic growth when your financial assets are invested in and used by the global economy. This is not a free lunch. It is your fair share of profits as compensation for putting your money to work.” Dan Goldie
The Friedberg Family Portfolio Today (For informational purposes only) “Of course. I favor passive investing for most investors, because markets
Dan Goldie and Gordon Murray wrote a brief, yet comprehensive guide to investing which covers all the major investing decisions in only 66 pages. After being asked to review the book, I became interested in the background of the authors, both accomplished in their respective investing fields. Furthermore, Goldie, a retired professional tennis player, engaged in a sport that was close to my heart.

The Lazy Investor’s Guide to Asset Allocation “Don’t put all Your Eggs in one Basket.” Anonymous This adage is crucial to