Beat the Market – it is very difficult to beat the market, many experts have tried and usually failed although on the odd occasion they do. As an average investor, chances are the best you can do is either be a long term investor and not worry about the ups and downs. Or you can sell when you have made money and buy back in when the market is down. It can always go higher and it can go lower, but at least you made money!
Stock Picks Made Money – Chances are you were just lucky. No one really can predict the short term fluctuations of stocks. Long term there is more of a chance, but not short term. Pick high quality stocks with good balance sheets that pay regular increasing dividends and watch them grow over time.
Bond Prices Fall – Fed’s Caused it is a nice excuse, but really it is the competitive currency wars that are ongoing all of the time which push rates in one direction or another. As interest rates change around the world, so do currencies and so do Bond rates. Yes in the short term the Fed may have an impact, but overall it really depends on the corporate results, the competition from other countries and what they do with their currencies.
Portfolio Has Grown – has your portfolio grown because of deposits? because of dividends or both? The real return on your investments depends on the capital appreciation which sometimes can be negative, the deposits you make and what you do with the dividends and interest your investments generate. They all contribute to portfolio growth.
It is only a Paper Loss – my favorite is the paper loss or even the paper profit. Nothing is final until you sell.. The real question is what do you do when an investment is down. Do you sell and trigger the loss, do you hold and hope for the best? Both are viable solutions. A paper loss really means nothing until you take action.
Bought it for Diversification – Diversification is a good thing, but each investment must be well thought out and have positive investment attributes on its own. Just don’t buy to increase diversification by itself. You could lose a bundle.
Timing the Market – Get out before the correction whenever it is. You will almost always be wrong. Get out when you have made a profit or if the investments are good quality investments with income, hang in there for the long term. Timing the markets, particularly when they are volatile is an impossible task.
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