Investing should be easy – just buy low and sell high – but most of us have trouble following that simple advice. There are principles and strategies that may enable you to put together an investment portfolio that reflects your risk tolerance, time horizon, and goals. Understanding these principles and strategies can help you avoid some of the pitfalls that snare some investors.
In the world of finance, the effects of the "confidence gap" can be especially apparent.
Have A Question About This Topic?
Why have the markets been so volatile recently?
Consider how your assets are allocated and if that allocation is consistent with your time frame and risk tolerance.
Bonds may outperform stocks one year only to have stocks rebound the next.
A company's profits can be reinvested or paid out to the company’s shareholders as “dividends."