Salient to Investors:
Mitch Tuchman at MarketRiders writes:
- Google Trends shows people are getting interested in stocks again, and the market rally has unleashed media stories about small investors getting back into equities.
- Stocks were never safe, nor will be.
- The bond market implies all kinds of risks that most small investors ignore, such as credit risk, interest rate risk, and inflation risk.
- Jack Bogle at Vanguard says stocks will double over the coming decade versus 35% for bonds.
- True diversification includes hard assets, such as commodities, a mixture of stocks and bonds that includes foreign and emerging country shares, small-cap stocks, and real estate.
- The key to risk-adjusted investing is to buy diversified index funds and ETFs, and own the correct mix of asset classes, with occasional rebalancing.
Read the full article at http://www.forbes.com/sites/mitchelltuchman/2013/02/01/dow-14000-what-to-do-now/
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