We live our lives uncertain of future outcomes — and it will always be this way.
None of us have a crystal ball to predict the future, and that is why it’s important to learn how to effectively deal with uncertainty in our personal lives — and our investment lives. Fortunately, there’s a solution to handling uncertainty in our investment lives which involves diversification, academic research, and financial science. Continue reading
Most investors are buying based on past performance thinking that the future will replicate the past. Take for example, cryptocurrency: Bitcoin wasn’t very appealing to the masses at $1 in recent years, but when it started trading in the 5,000 -10,000 range it attracted many new entrants. The new entrants are most likely buying because they think the future will mimic the past. Continue reading
Having an investment plan that you can stick with—through thick or thin—is very important. If you start to jump in and out, chasing recent performance, then your returns will suffer.
Volatility (price fluctuations), both up and down, are normal and inevitable. The challenge is to be able to live with the plan through good times and bad. Once you have a plan in place, stick with it. Continue reading
It’s never too late to do the right thing. This holds true for becoming a good investor.
If you are considering investing for the first time during 2018, or perhaps you’re a seasoned investor looking to sharpen your skills, consider these points: Continue reading
{1:45 minutes to read} The market is a giant processing machine that sets prices by aggregating information from investors around the globe. Future, unknown news is what ultimately moves the market; therefore, the only way the market can be viewed as “too high” is with hindsight. We as people make new highs every day in our lives (our age).
Headline markets like the S&P or Dow Jones may appear too high—but really aren’t when viewed in the context of a diversified global portfolio.