|
Trying to guess or time the direction of the market is a fools game.
For best Investment success as opposed to Speculation
Develop an asset allocation appropriate for the level of risk that you can take on
X% US stock
Y% Foreign stock
Z% Fixed(cash, bond)
further subdivide X into the 9 stock categories [small medium large] x [value blend growth]
do the same for your foreign
allocate and re-balance periodically, this forces you to sell hgh and buy low, as does buying out of favor sectors
annually reassess the asset allocation that is appropriate
you can further diversify and reduce risk w/ other diversifiers like real estate or gold & other commodoties
|