So just for fun -- do a "visual" on my theory of "parking money".... remembering that all of us have different goals and different "means" etc... and trust me - I'm the first one that understands that.
Go to Google Finance -- pull up a 10 year chart of JNJ -- then in the COMPARE box at the top of the chart -- compare UTX - KO - GE
For years I used General Electric (GE) to "park" money. But as you'll see - if you didn't change that when Jack Welch retired (the GREATEST CEO) then that strategy bit you...
But what I want you to see is how "narrow" that line is of JNJ near the "ZERO" mark - so it isn't growing (above the line) but it doesn't go far below it either...and for that segment of "money" that has importance to me.
It's about BALANCE.... I want to balance the risk stocks with steady stocks -- Knowing that I might give up being the biggest winner in a competition had I put everything in the big risk/reward bracket.... but I'm not going to be the biggest loser in a down market either... and I might be able to take advantage of the big losers when they're giving away their apartment complex or building or hot rod etc.
