Summary
Admit it: You're a coward. When you look danger in the eye, it's from the lens of a telescope. But that's not necessarily a bad thing when it comes to investing. And if you're tempted by this stock market -- but too scared to do anything -- you should create a cowardly portfolio.
A truly terrified investor doesn't ask what he will gain from an investment, but what he stands to lose. As investors learned last year, the answer to this question is important. If you lose 50 percent of your money, you'll need to earn 100 percent to break even.See the full content of this document
Extract
Investing: Squeamish Shareholders Can Create Winning Portfolios
Only 148 stock funds out of 5,554 distinct portfolios tracked by Lipper have recouped their losses since the bear market started on Oct. 9, 2007. And 2,085 are still down 25 percent or mor...
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