Out There Bearish investors took the stock market lower Tuesday following the Federal Reserve Board's 7th short-term rate cut of the year. Whether you're new to the game of investing or a seasoned veteran, we've got some great new features and columns you can benefit from. In setting goals, I like to use the story of Alice in Wonderland, who at one point in the story comes upon a fork in the road. Starting Early The concept here is simple, the earlier you start investing the longer you can put money to work for you and enjoy the power of compounding. Risk and Reward Assessing your tolerance for risk is an essential ingredient in the investment process.
Risk is defined in many different ways.
The concept behind diversification is to balance your investment defensively by spreading your money among securities of different industries, sectors and assets classes. Dollar-Cost Averaging Studies show that it's nearly impossible to time the markets yet the temptation is always there to try. Realistic Expectations Having realistic expectations about investment performance is as critical to the investment process as understanding risk. When you talk about the 'cream of the crop' in the mutual fund industry, you clearly have to include Bill Miller. Do not duplicate or redistribute in any form.