This is the time of year when investors start to review their portfolios and try to figure out what's in store for next year. As you go about counting up your investment winnings, selling your losers and rebalancing your portfolio, keep in mind these six key lessons.
- Tom Sightings, Yahoo! Canada Finance
This is a great article that summarizes how everyone should approach investing. The key messages are:
- For most investors, mutual funds or exchange traded funds are the best investments;
- You cannot predict the market, but you can certainly control fees;
- Diversification is key;
- Keep it simple – there are many complex products that promise higher returns. But you don’t necessarily need them;
- Beware of marketing – if you buy into a trend, you may do well in the short-term, but lose out in the long-term;
- Defend against your worst enemy: Yourself. “Your friend really is a solid, long-term plan that does not waver with the latest financial or political winds”.
Read on and consider these messages as you review your investment portfolios and revisit your financial plans. If you don’t have one, it’s never too late – you could get started now!