You’ve no doubt heard the old mantras: “stocks for the long haul,” “diversify,” “buy and hold.”
Investment gurus worldwide repeat them daily. But are these strategies really wise for ALL markets? Can advice that sounds so simple (but so vague) be useful to you as an investor?
Anyone who diversified their portfolios across several stocks, bonds and commodities over the past three years knows that diversification is no foolproof way to profit. The same goes for individuals who decided to buy and hold the S&P index 10 years ago — they’re barely at breakeven, even after the recent rally. Many individual stocks have never come back from the drop in 2008-2009.
During the mania — when the trend was almost always up — virtually anything had a good chance to go higher. Investors ignored advice that cautioned against risk, because there was always someone lucking into a moon shot during the insanity. The S&P index itself – followed by the NASDAQ and other markets – sat at the center of the mania. Back then, simply being in an index often outperformed other popular strategies. That’s not the case any more.
Our friends over at Elliott Wave International have just released an ebook to help you recognize and avoid bad investment advice forever. EWI’s 33-page Market Myths Exposed eBook takes the 10 most dangerous investment myths head on and exposes the truth about each one in a way every investor can understand.
You will uncover important myths about the safety of your bank deposits, earnings reports, investing in bubbles, small stocks, inflation and deflation, speculation and more.
About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private around the world.