In this episode, Mark discusses how investing is a process. If you want to diversify, you buy multiple variations stocks. If you want to asset allocate, you buy international, emerging markets, etc. The US has continually performed better than international and emerging markets. Do not sell your emerging markets and international positions. Proper asset allocation is paramount. "Just hold onto the bond until maturity”. When rising interest rate bond goes down, decreasing interest rate the bond goes up. It's great to own cheap until it's under performing or not doing well. “You actually won the market” when investing in big funds. Some investors make larger bets on some of their positions to hopefully create bigger returns for the portfolios. It's a guessing game. Mark also talks about strategic cost averaging vs. dollar cost averaging. Keeping the balance of the overall portfolio in check and allocated correctly is important.
January 19, 2017