|
|
|
Bond investing
Bond investing is the safest way to invest long term.
One of the safest ways to invest is in bonds. If you are thinking about investing in bonds, chances are you are making a very good decision. You should be able to make a little bit of money on...
Investing In The Stock Market – 9 Power Packed Tips
1. Do not spread your money too thin.
My friend has a little over $200,000 invested in the stock market through 27 different Mutual funds. In my opinion, 27 Mutual funds is 27 too many collecting load fees, management fees, commission fees,...
Making Money in Real Estate - Tax Lien Investing Tips and Risks
In my last article I gave a brief introduction to what tax liens
are and talked about how you can earn huge returns by invest
ing in tax lien certificates and tax deed sales. But it's
one thing to know that investing in tax liens can make...
The Demise of Buy & Hold
Based on consistent results I think Buy & Hold should be renamed Buy, Hold & Bye-Bye. It sounded great for a while, especially for the huge majority of investors who don't have the time or interest in really doing due diligence on investments. ...
The Good And Bad Of Property Tax Investing
Gather around children for a tale of royal power. Far back in
history the king owned everything. (Does that remind you of
Donald Trump?). Occasionally the king would grant property to a
duke. Property ownership meant wealth, so the king would...
|
|
| |
|
|
|
|
|
|
Defining Investing Risk
"Take a chance! All life is a chance. The man who goes the furthest is generally the one who is willing to do and dare. The "sure thing" boat never gets far from shore."
Dale Carnegie (1888 - 1955)
In 1998 Economics Professor and Nobel Prize winner Paul Samuelson (1915 - ) noted that, "Many people now believe that if they simply hold stocks long enough they will not, lose money for statistics have shown that since 1926 the U.S. equity market has not suffered a loss in any given 15 year."
He called it a fallacy, and conceded that it is truly likely that if you hold stocks over long periods of time that they would tend to produce returns higher than other assets. But to believe that it is a God given statement ... Is simply not correct!
"Risk does not go to zero over long periods," but there are many articles that reflect how risk goes down the longer the time period. What is seldom introduced is the fact that if there is a significant onetime loss, it can be monumentally overwhelming.
In any case Samuelson noted that: "The problem is that when stock prices do turn down (as inevitably happens even in the strongest of bull markets!) your optimistic equity exposure can overwhelm your gut level risk tolerance, leading to poor short-term judgments and even outright panic!"
Risk is a complex, multidimensional concept that manifests itself in various ways. Risk is omnipresent and includes stock market crashes, corporate bankruptcies, currency devaluations, changes in sentiment, in inflation and interest rates, and even major changes in the tax code.
Risk is
generally defined as return volatility, or the degree of ups and downs of returns. But there's more to risk than volatility. Risk and long-term reward are generally related. Risk is the chance that your actual return will be less than you expected.
People sometimes think that a good return can be achieved with little or no risk. Unfortunately, that's impossible. To achieve your objectives, you need to assume certain risks and avoid others.
Your ability to handle risk is related closely to your individual circumstances, including your age, time horizon, liquidity needs, portfolio size, income, investment knowledge, and attitude toward price fluctuations.
What's highly risky to one individual may be no problem to another. Short-term fluctuations are not that relevant for long-term investors who have the discipline, patience, and understanding to deal with them. Stock funds are actually less risky than money market funds for those with long time horizons.
Well-informed investors are far less likely to let risk get the best of them. Those who understand the various elements of risk are better equipped to enjoy a profitable long-term investment journey!
About the Author
Copyright © 2005 Ioannis - Evangelos (Akis) C. Haramis
haramis@greekshares.com
http://www.greekshares.com
Ioannis - Evangelos (Akis) C. Haramis was born in Athens, Greece in 1951. He studied in Greece, in USA and in Belgium and has been active in the stock markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and the publisher of http://www.greekshares.com
|
|
|
|
|
| Investing: Stock Quotes, Charts & Market News - MSN Money |
| Investing home page features investment tools like stock quotes, charts, a portfolio manager and much more. Plus market news and financial commentary from ... |
| moneycentral.msn.com |
|
| Investing : Stock Investing, Investing News |
| Our stock investing news is designed to help new and seasoned investors alike. See all of our investing news online at BusinessWeek.com. |
| www.businessweek.com |
|
| globeandmail.com : globeinvestor.com |
| GlobeInvestorGOLD Canada's most comprehensive investment tool. ... This Globe and Mail report will profile alternative investment products designed to help ... |
| www.globeinvestor.com |
|
| Fool.com: Investing, Stock Research, and Personal Finance |
| Investing information and an enjoyably useful site. Updated hourly. |
| www.fool.com |
|
| Investing, Stock Quotes and Research, Personal Finance and ... |
| Free comprehensive guide to investing and personal finance. |
| www.investorguide.com |
|
| Open Directory - Business: Investing |
| Business: Financial Services (17198); Business: Major Companies: Company Information (28); Recreation: Collecting (5684); Society: Issues: Fraud: Investment ... |
| dmoz.org |
|
| Better Investing - We'll show you how! |
| The National Association of Investors Corporation (NAIC) teaches individuals how to become successful strategic long-term investors. |
| www.betterinvesting.org |
|
| Dow Jones, Nasdaq, S&P 500, stock market data - CNNMoney.com |
| ... Real Estate Tips Main FSB 100 Small Cap Investing - Top 50 5 Best Bosses Which States Love Small Biz? ... Investing after Pfizer's flop - 3 strategies ... |
| money.cnn.com |
|
| Investing News, Personal Finance, Stock Market, Mutual Funds ... |
| Reuters.com is your source for investing news, personal finance, stock market, mutual funds and investments. Reuters is the leading global provider of news, ... |
| today.reuters.com |
|
| Investment - Wikipedia, the free encyclopedia |
| Investment or investing [1] is a term with several closely-related meanings in ... Types of financial investments include shares or other equity investment, ... |
| en.wikipedia.org |
|
| Investing In Bonds |
| Information about bond investing from The Bond Market Association. Bond price information, articles, introductory guides, and links to related sites. |
| www.investinginbonds.com |
|
| Investing for Kids |
| Welcome to Investing For Kids. This Web site is designed by kids for kids. It examines stocks, bonds, ... It teaches the principles of saving and investing. ... |
| library.thinkquest.org |
|
| internet.com - the Internet and IT Network from Jupitermedia Corp. |
| The definitive internet resource. |
| www.internet.com |
|
| InvestorWords.com - Investing Glossary |
| The most comprehensive investing glossary on the web, with over 5000 definitions and 15000 links between related terms. |
| www.investorwords.com |
|
| Investing - Share prices | FTSE100 | Stock quotes | Stock exchange ... |
| Also on Investing:. December Fund of the Month: River and Mercantile UK Smaller Companies · Virtual Trader: play our £100k fantasy sharetrading game ... |
| money.uk.msn.com |
|
| JS Online: Business: Investments |
| Investing, Personal Finance. More investing stories from the Journal Sentinel ... Readers share investment advice, savings tips COLUMNIST HUMBERTO CRUZ ... |
| www.jsonline.com |
|
| Welcome to the Investing Online Resource Center! |
| Independent, non-commercial information on online investing. |
| www.investingonline.org |
|
| Investing for Your Future |
| Online course for beginner investors. Course and program description, registration, resources, feedback and contacts. |
| www.investing.rutgers.edu |
|
| investing | baltimoresun.com |
| Business, technology, real estate and investing news, primarily from The Baltimore Sun. |
| www.baltimoresun.com |
|
| Investing for Beginners |
| Investing for beginners gives new investors articles on the stock market,interviews with leading financial experts, discussion boards, a free weekly ... |
| beginnersinvest.about.com |
|
|