Alice Schroeder, Bloomberg columnist, wrote about the Wall Street proclivity to stretch for alpha – the desire to get investment returns that beat the market. This stretch for alpha stretches past moral bounds, illegally using insider information to get that edge.
“The goal of investing is to get an edge, whereas the securities laws presume all [...] Read more »
Over time, riding out the markets’ inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend.
Even missing only a few of the markets’ best days can significantly diminish investor returns.
Patience also affords the benefits of compounding – of earning interest on additional income or reinvested dividends and [...] Read more »
Market timing makes more sense with individual stocks. Three out of four stocks move in the same direction as the market. And a stock can dart way above or way below the market average.
Failing to trade in step with the market can be ruinous to those not committed to keeping losses small. A stock can [...] Read more »
Money magazine quotes Susan Byrne, founder and chairman and chief investment officer of Westwood Management, who states:
“We make an annual appointment, rebalance, and then I don’t look at my 401(k). I don’t worry about it when it struggles, and leaving it alone and keeping it diversified has helped it grow nicely, even though we’ve [...] Read more »
A key element of your investment strategy is to “stay the course”. Inherent in this phrase is an assumption that you are on a course and a plea that you not deviate from it. So it is with investing. It’s important that you have a course and that you stay on it. Read more »