Uncertainty is a constant in investing. Rather than hope for portfolio gymnastics to deal with unforeseen events, sensible investors rely on diversification and discipline. In so doing, they distinguish themselves from speculators and, we’d argue, not only enjoy a higher probability of success but a better quality of life, as well.
Market-timing investors’ efforts to outguess the random day-to-day variations in the stock market hurts their performance. They’d have better results if they behaved like rats.
Many investors believe a market correction is around the corner, as stock returns seem to have been too good for too long. While investors should always be prepared for turbulence, a review of history suggests these market highs won’t last long for a much different reason.
New York Times columnist, Ron Lieber, examines the hidden dangers lurking below the surface of an asset most investors view as being safe.
Q: With the recent news that one of the world’s highest-profile bond managers eliminated his fund’s exposure to U.S. Treasury bonds, should we be selling our Treasuries, too? Do other types of bonds now offer better return opportunities?
After accurately predicting the Global Financial Crisis in 2008, Robert Rodriguez and Peter Schiff quickly came to be viewed as investment gurus who could provide shelter from the storm. Investors eagerly followed their advice in anticipation of the fortunes certain to follow. How did they fare?