Just as regular dentist and doctor visits, regular exercise and healthy eating habits help improve our bodies’ chances for success, routine checkups on your exchange traded fund (ETF) portfolio can improve its health. These are all things we know we should do for ourselves, just as most investors know they should have diversified portfolios, yet few actually seem to do it, says Roger Nusbaum for Random Roger’s Big Picture. Another unhealthy habit is continuing to make big bets. Big bets can lead to big disappointments and losses. Investors don’t need to make investing more complicated than necessary: Even if the market declines 5%, history is always on the investors side and ETFs will come back. Market ups and downs are just a part of the cycle.
We agree that it’s better not to make "big bets." With so many different arenas to invest in, from different asset classes, to regions, to sectors to commodities, there’s no reason any investor should be over-allocated in one area. Investing most definitely can be kept to the basics: Have an investment strategy and stick to it.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.