Investments: Should or Must not ???
Is there anyone who feels overwhelmed by so many investment options available in the market. 401K,IRA,Roth IRA,Stocks,Mutual Funds,CD,Foreign Exchange,Real estate ( one of the best options right now ,if someone can afford a 20% down payment ) and many more.
I started trading recently and somewhat face the same dilemma , should i buy only the finance stocks, as they are so down right now or should i diversify and buy energy,commodity,tech as well.As smart investors always say that secret is "Diversification of Portfolio" or in good old plain English phrase "Never put all your eggs in one basket" . I may not be the smartest investor on the block but what i feel is that diversification is good to minimize the losses but if you want a big,fat return .....its better to go full throttle without any diversification. I know it can be suicidal and we may end up loosing all our investment but what if it booms ? What if that one stock where you have put all your money doubles in lets say two years as compared to an average 10% return on your diversified portfolio ? ( provided one has done in depth research and has full confidence in the sucess of the company or the product)
Something to ponder:)
No comments:
Post a Comment