April 10th... I dissolve my TD for $70 Gs, my nest egg, and invest it
in a conservitive Portfolio of US Bonds ($20g) and 4 highly rated
Mutual Funds.
April 14th...the Mareket plunges. I'm out $6g!
Today, May 16th, I'm out $4g, but but the end of the year I really
will be ahead of either TD interest or erratic stock investments.
It's an eye opener, but you have to do three things:
1.) Look at the Fundamentals
2.) Define your acceptable Risk
3.) Comprehend the PERIODICY and RANGE of Market Swings on each investment.
This means understanding how UP and DOWN the value goes and the unit
of time between peaks or troughs. Look at the Fund Statement for this.
Go to http://www.quicken.com/investments/ for an easy way to plug in
the Wall Street Journal stock or fund code to see valuation and
history.
My Broker is Scott Berryman (465-5973) over at Well Fargo in Eugene.
I liked his ration way of discussing things,...but I'll bet any pro
will do much as he did.
Avoid Amazing Opportunities and Foreign Stock Markets right now.
By the end of today we'll see what Greenspan says, and lets wait to
see how the Market reacts.
I hope this helps. Remember, nothing anyone can say will make Risk
anything less or other than Risk.
Hal
