Market Timing, Diversification, Buy and Hold.
Why?
Where did this holy triumvirate come from?
The same place that the bunk about 8-glasses of water a day ... or 10,000 steps a day?
Tripe of the same sketchy origin.
Life is timing ... as in "Timing is everything."
Timing is everything ... except for investing?
Come on ... that's preposterous.
You're saying that the timing of buying NVDIA 10-years ago is irrelevant?
You’re saying that if the markets crash, hold onto your positions and watch as your wealth evaporates … because someone, somewhere told you Buy and Hold was the magic bullet?
Get real.
Likewise diversification.
Did you ever consider the problem of diversifying your portfolio to mediocre performance?
Warren Buffet has frequently stated that diversification is for investors who don't know what they're doing.
Ok. So, Warren is the Oracle of Omaha and a brilliant investor ... except he's a fool about this? Come on.
Get real.
... and finally. Buy and Hold.
Where did this gem come from?
Are you telling me to never sell? EVER?
Ok, the markets will go up forever and the positions in your portfolio will never go down. Got it.
So if a position in your portfolio is up 80% on overnight news, you never sell?
Come on. What about “Never look a gift horse in the mouth?”
If someone showed up at your house with a truckload of cash and offered you $50 million for your hovel, you'd decline the offer because Buy and Hold is immutable law?
Intel was at $75 in 2000. Now it's trading at $20. You have a massive loss ... but the sycophants of Buy and Hold, actually sold a long time ago ... they just wanted you to hold until they could get out!
Get real.
You make money in these volatile markets with prudent decision making.
Get a decision maker on your investment team.
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Ray