Some of you may notice that on occasion there are repeated messages. Think of them more as reminders to success. Repeating the same important message will help you internalize the message. That said.
Most investors think that long term is five to ten years. For the day trader it could mean ten minutes. In reality a well thought out strategy may take a lifetime of patience, wisdom and discipline to work effectively.
Think in terms of holding most of your investments over the remainder of your life.
You will change the risk level as you get older. However, you will continue to own a globally diversified portfolio with the right amount of high quality short term fixed income.
Remember the Wall Street bullies make most of their money when you trade. Their ability to predict the future is no better than yours.
The real problem is that there is always some money manager who makes the right call at the right time. The Wall Street bullies then advertise this manager’s success. Touting their ability to predict the future.
When you look back at their successful money managers’ ability to repeat you will be very disappointed.
Or I have heard of advisors luring new clients with the promise of successful market timing. These advisors claim they can get you into and out of the market at the right times. Again investors will be very disappointed in their long term results.
The secret to successful investing is not picking which stock or asset class will outperform, Nor is it trying to market time the market. this has been proven time and again not to work. The secret to successful investing is choosing a proven strategy and sticking with it.
To succeed find a prudent process with evidence to back it up.
Remember own equities with the right amount of high quality short term fixed income…..globally diversify…..rebalance.