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George Divel Investment Tips

# 5  Don’t try to time the market

Everyone wants to buy low and sell high.  What could be nicer than to buy a stock at $3 and sell it at $30, or $60 or $200? But for most of us this is just a fantasy. It is very difficult to pick the best time to buy a stock or to time the market in general.
Actually  it is time in the market and not timing the market that counts.  The best way to be a successful investor is to get help finding good investments and then  stick with it for the long term. Most people make the emotional error of buying into an investment when it is at the peak of its performance and then selling out when its value has dropped.  To invest wisely, keep emotion out of your investment decisions as much as possible and try to get as much help as you can selecting investments that will serve you over the long term.

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February 20, 2008 Posted by | Uncategorized | Leave a comment

George Divel Investment Tips

#4 Diversify

The notion  not to “put all your eggs in one basket” is probably the oldest piece of investment advice. It is also great advice.

Nobody, even the smartest investors can foretell the future but if you keep your investments diversified, you are protected because the odds of any one bad investment hurting hurt are greatly diminished.

If you ask an investor who has lost a great deal of money their greatest regret, it will likely be “I should have been more diversified. I should not have put so much into one investment.

Whether you are a small investor or have millions of dollars in assets, you won’t go wrong by starting your investment program with diversification as your goal

Talk to your investment advisor about what diversification means to you.  Some investors think it means buying different stocks. But there is much more to diversification than that.  A balanced portfolio should not only have diverse stocks or mutual funds, there should also be diversification between stocks and bonds. That’s why it is important to tell your financial advisor about all your assets, including real estate so that you can get advice to truly diversify your holdings.

February 5, 2008 Posted by | Uncategorized | 1 Comment