The reason we invest is to grow our money — and the way to do it best is by delaying gratification. We know that because of historical experience. We also know that risk and reward are related.
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If you want to get excess returns in the market, expect volatility and price fluctuations. You cannot have one without the other.
The alternative is to buy a Treasury Bill or a money market fund; but if you want a higher rate of return, you have to be willing to accept more risk. Bull and Bear markets will cycle; and while it’s never comfortable when the market drops, just remember that the market is priced to provide investors with a return each and every day. Continue reading
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