My thoughts exactly.
Scary...It is called diworsification.
It really does not work.
Printable View
Who knows - maybe these billions of "stupid" people are just following "the intelligent investor" from Ben Graham.
For anybody who does not know why it makes sense to invest both in shares and in bonds to have a balanced portfolio ... they will find the answer in this investment classic :):
But I am sure, winner - you know that anyway ...
I guess the question is whether you want to have high gains and are prepared to accept high risk ... or whether you prefer medium gains with a lower risk of losing capital.
There is no right or wrong - the individual needs just to know what game they get into and be prepared to accept the outcomes, whether the dice roll in their favour or not.
With classic books it is like with classical music or classic cars - they just stay great and you still enjoy them after decades, centuries and some after millennia, while most of the new stuff (music as books) will soon be forgotten.
I prefer classic over new :p;
But hey - I didn't read the book you are referring to, but know it does recommend index funds. Who knows, maybe it will be a classic in some decades, maybe not. I think the jury on index funds is still out. Obviously - past performance looks good, but given that investing lots of money in index funds is still a quite young phenomena, - only time will tell how they survive the next handful of GFC's. Some experts are concerned how a material amount of money invested in index funds might impact on markets in times of downturn - they obviously amplify bubbles and they might as well amplify downturns. In engineering we call this negative feedback loops.
Anyway - time will tell.
I thought this was the OCA thread ? Big test of the $1.05 support today. Will it hold or will it fold ?
There's a whole separate section in the forum for investment strategies.
When things are this dire, there is always a large flock of "the birds of blame" (Shouldna excrementica) wheeling overhead. The are ready to **** on anyone for any reason or for none.
We are at the age and stage when we are starting to have to use our capital, and it is a real bummer to be caught between the rocketing price of building materials for the long awaited ensuite, and the plummeting price of the portfolio.
And grossly and imprudently overweight in OCA. I wish I could find someone else to blame