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Ten Investment Lessons From A Dismal Decade
Here's a good article about ten investment lessons from a dismal decade. The first decade ever that lost value overall for blue chip stocks.
Nothing too new or exciting, but it is a good reminder of investing basics.
1. Diversification isn't dead
2. Asset allocation works
3. Market-timing doesn't work
4. Rebalancing reduces risk
5. Save so you don't have to sell - have an emergency savings fund
6. Heed markets, not marketing
7. Recognize trends and cycles
8. Expect the unexpected
9. Keep your own counsel - Get educated, empowered to make your own decisions
10. There is no free lunch
Any other lessons you would add?
Nothing too new or exciting, but it is a good reminder of investing basics.
1. Diversification isn't dead
2. Asset allocation works
3. Market-timing doesn't work
4. Rebalancing reduces risk
5. Save so you don't have to sell - have an emergency savings fund
6. Heed markets, not marketing
7. Recognize trends and cycles
8. Expect the unexpected
9. Keep your own counsel - Get educated, empowered to make your own decisions
10. There is no free lunch
Any other lessons you would add?
Tags: ten investment lessons
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Replies to This Discussion
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Permalink Reply by lea on -
A good list.
I would add:
11. Start investing as early in life as possible (compound interest)
12. Invest based on facts, not emotions
13. Be a contrarian - (invest where the rest of the herd is running away from)
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Permalink Reply by James Scott on -
Great additions lea. Most investors wish they had started earlier in life. This is why most children of serious investors end up doing pretty well.
The Obama Administration is thinking of passing a law that says employers must automatically enroll their employees in a 401K plan with the ability to opt out. This will lead to more people investing early in life. Right now, you have to opt in to the 401k plan and many people don't becuase they don't understand it or realize the need to start doing it right away.
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