Trying to asset allocate tactically by market is not easy. Passively’ owning the S&P 500 only this actually an active decision that forgoes...
Sometimes you need to take a step back to see the bigger picture. Money, or rather our investments and life assets are no different.
Diversification is an investment principle that we all know we should be following. But we also need to understand what diversification is not:
Humans are constantly frustrating for economists - we don’t act like rational beings and follow their models.
When you invest, you expect to get the return due for the risk taken.
With luck on one end and skill on the other, where does investing fall on this scale?
No one likes to be the schmuck who invests at the peak, only to watch their investments tumble the next day. But is that worse than sitting in cash?
Tax, if not careful, can shoot low-cost investing in the foot.
Owning real estate has been heralded as the ‘best’ way to grow your wealth. But is it really better than investing in the market?