It’s about having options for how you live today AND tomorrow.
There are several factors an investor must consider when evaluating an investment’s return.
A look at how we make investment decisions–what we’re watching and how we form our view.
One of the fascinating things I observe about human nature is the competing desires for both stability and excitement. We want safety but also something that’s feels a little bit daring.
Some investors may evaluate risk based on how much the price of their investment bounces around, i.e. volatility. Others may define risk more in terms of their goals.
When you invest, it’s like dropping back to pass. You must be able to stand in the pocket with the possibility of taking a hit. The more aggressive you are—the deeper the pass you want to throw–the harder the hits can be.
Over time, stock prices typically reflect how a company is performing. The more money a company makes, the more it should be worth.
Sometimes it’s better to be mixed in with the herd. But, when it comes to investing, it makes sense to head for your own island, all by your lonesome self.