Does anybody still delve in the stock market? Does it seem like good news is bad news bad news is bad news no news is bad news. It's seems like there no rhyme or reason to it. I'm just about to bail out all together. Yes I do buy real estate also but aren't you suppose to diversify.
I do investments for a living. Yes you are supposed to diversify. If you had losses in 2003, then something is wrong - the market was up over 20%. The market is flat for the year this year. Bottom line, sometimes it goes up, sometimes it goes down; however over time it goes up - just like real estate.
its like a roller coaster... what goes down must go up and vice versa.....
just don't forget to put your seat belt on before you take a ride!!!!
I do better gambling on football games...
The first thing you need to decide is what is your purpose for the money you have invested. If it is for long term and retirement puposes you need to have a plan and stick to it. Decide what your time frame is until you will need to draw form it, have a realistic rate of return in mind based on you risk tolerance(they have test for you risk tolerance), and then put together a diversified portfolio with proper asset allocation and realistic expectations for your goals and objectives. If you are not comfortable with being in individual stocks you can lower the volitility of your portfolio by going into mutual funds also.
The market has highs and lows, but I would look at my entire plan before just pulling out. Just my 2 cents.
U4R
Single stocks are what people are talking about when they say the stock market is "risky". If we're talking mutual funds, I could show you no less than 10 funds that have a 10, 15, 20 or 40 year track record of double digit returns. I even found one that has a 70 year average return of 12%!! In the history of the stock market, only one 5 year period has shown a decline and no period of more than 10 years has ever shown a decline so it's a pretty safe forum for investment.
The others were correct when they mentioned diversification. I'm hardly an expert, but I know you don't bet the farm on one horse because the horse might break its leg.(Enron, WorldCon) Money is like manure-If you put it in one pile it will just stink, if you spread it around it makes things grow!!
Originally posted by Up 4 River
The first thing you need to decide is what is your purpose for the money you have invested. If it is for long term and retirement puposes you need to have a plan and stick to it. Decide what your time frame is until you will need to draw form it, have a realistic rate of return in mind based on you risk tolerance(they have test for you risk tolerance), and then put together a diversified portfolio with proper asset allocation and realistic expectations for your goals and objectives. If you are not comfortable with being in individual stocks you can lower the volitility of your portfolio by going into mutual funds also.
The market has highs and lows, but I would look at my entire plan before just pulling out. Just my 2 cents.
U4R
Very good advice, definately the correct perspective on investing. You always need to define the goal then determine if the investment is appropriate. To use a boating analogy - determine what type of boating you like to do, then you can figure out what kind of boat to build.
Originally posted by HighRoller
Single stocks are what people are talking about when they say the stock market is "risky". If we're talking mutual funds, I could show you no less than 10 funds that have a 10, 15, 20 or 40 year track record of double digit returns. I even found one that has a 70 year average return of 12%!! In the history of the stock market, only one 5 year period has shown a decline and no period of more than 10 years has ever shown a decline so it's a pretty safe forum for investment.
The others were correct when they mentioned diversification. I'm hardly an expert, but I know you don't bet the farm on one horse because the horse might break its leg.(Enron, WorldCon) Money is like manure-If you put it in one pile it will just stink, if you spread it around it makes things grow!!
I know what fund you are talking about with the 70 year return of over 12%. If you look over the last 70 years, that fund on average has only shown a negative 1 out of every 6 years. Interesting thing about that fund company, they do no marketing or advertising, they only sell through financial advisors - and they are one of the largest fund companies in the nation.
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