MoneyWatch Investment Mantras
1. Buy index funds.
2. Diversify your assets.
3. Keep costs low.
Princeton economist Burton Malkiel says simplicity is key to a successful portfolio.
- In the past decade, index funds consistently outperformed two-thirds of all actively managed funds.
- Bonds did very well during the last decade of stock market losses and stagnation.
- Diversify internationally and into emerging markets.
- All you really need to be thoroughly diversified are in stocks, bonds, and cash.
- China has been the most rapidly growing economy in the world for the last twenty years and will continue to grow.
- Look for low cost investments! In the investment business, you get what you don’t pay for.
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