If we had listened to the warnings, refused to invest in the market because of its high prices and remained in cash, we would have felt exasperated. For funds invested for retirement, you will probably not be touching this money earlier than 2030. Be well-diversified in growth investments, use asset allocation techniques and you will be well rewarded when you retire. Concentrate on companies with real unit growth not just revenue or profit growth alone especially as we enter deflationary periods when corporate gross margins tend to collapse. For monies you need in less than five years, you may wish to invest in more income producing assets since the equity market cycle may be down when you need to cash out to buy a home or finance a major purchase.
Many investors make the mistake of investing in last year's winners.
They assume that the upward price momentum won't stop. That is the best place to invest your money. So if your goal is maximum returns and your investment horizon is long, Templeton's advice makes sense for you. Advertising Info Site Map Help Market data delayed up to 20 minutes. Futures and Commodities delayed up to 30 minutes.