Dan Caplinger
May 1, 2009
Beginning investors are often happy to earn market-matching returns. But given the way the stock market has performed recently, you may have had enough of settling for big losses during down years.
In order to break out of that rut, you'll have to go beyond your comfort zone and start branching out into unfamiliar territory. You don't have to do it all at once, though. Just dipping your toes into new stocks that you've never looked at before will be enough to get you started on the road to better returns.
It's not all or nothing
One common debate among investors involves whether people should stick entirely with passive strategies like index investing or should strive to beat the market by actively managing their portfolios. Proponents of active investing point out that deciding just to match an index's return means suffering big losses during bear markets, such as the 37% loss in the S&P 500 during 2008. (more)
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