Re: Question for All?
zeno, yes all investments are just trying to beat inflation. of course that is not what people think. you might not invest if that was what you really knew. but think about it. that is what makes prices of anything ultimately rise and stay up. it has its down effects also.
diversifying your portfolio is only good for managing risk. you invest for the future so that when you retire you have a way to maintain a high living standard. so that is the main reason to diversify, so you dont put that in jepeordy by putting too much in one place. in general everything you invest in you should know alot about. buying things just to diversify is foolish as is putting all of it in a few stocks and risking a lifetime of work for a perceived chance at a higher return.
diversity is also investing out of the market. as the market as a whole rises and falls together. so you should have real estate, and tangible assets as well. could be antiques, gold, old cars, or what ever gives you pleasure.
trying to hit the home run. remember the home run hitters also have the highest strike out %.
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