MAKE SURE YOU ARE TRULY DIVERSIFIED Not truly diversified until you own something that makes you uncomfortable Uncomfortable usually means: unpopular, underperforming and cheap “Uncomfortable” assets today include: Value stocks Emerging markets stocks and bonds
Investing Principles
EXTEND YOUR INVESTMENT TIME HORIZON
EXTEND YOUR INVESTMENT TIME HORIZON PROBABILITY OF A LOSS FOR THE S&P 500 (Rolling Price Returns, Jan 1930 – Jan 2021) 1 day investment = 46% chance of loss 1 year investment = 31% chance of loss 5 year investment = 19% chance of loss 10 year investment = 10% chance of loss Source: Richard […]
DON’T FIGHT THE FED!
DON’T FIGHT THE FED! OR BEFORE YOU DO, MAKE SURE YOU KNOW WHAT YOU ARE DOING! Watch the related WEALTHTRACK episode.
STICK WITH YOUR INVESTMENT DISCIPLINE
STICK WITH YOUR INVESTMENT DISCIPLINE KNOW YOUR RISK TOLERANCE STAY WITH YOUR ASSET ALLOCATION REBALANCE WHEN IT GETS OUT OF WHACK BE DIVERSIFIED AMONG: RISK ASSETS, LIKE STOCKS SAFE ASSETS, LIKE SHORT-TERM TREASURIES HEDGES AGAINST DISASTER, LIKE GOLD Watch the related WEALTHTRACK episode.
KNOW YOUR RISK TOLERANCE AS AN INVESTOR
KNOW YOUR RISK TOLERANCE AS AN INVESTOR Understand Your Own Risk Tolerance Put to the Test During Market Turmoil Are You an Investor or a Speculator? Watch the related WEALTHTRACK episode.
PAY ATTENTION TO POLICY, NOT POLITICS
PAY ATTENTION TO POLICY, NOT POLITICS Political drama doesn’t determine: financial plan portfolio direction business climate Policy can determine: Interest rates Taxes Rules and regulations Watch the related WEALTHTRACK episode.
