Quote:
Originally Posted by GregWeld
Trust me --- I have the same issue and have to look and triple check myself all the time... This is just a great example to have used.
Yes you're a bit lopsided on consumer stocks -- but that can be okay IF we're truly in a turnaround in the economy. However... I wouldn't continue to add to your lopsidedness! Thus the diversify "push".
All of you - trust me when I tell you that you'll be happy to be diversified! You feel like a real sap when all your "tech" (substitute ANY sector here) is flying and you're looking at your "laggards" and questioning why you're in those POS names..... and then --- a year goes by and it's the sector that was flying that sucks and your laggards are saving your butt. The biggest problem is that we have real short term memory!
In 2011 - we had down 400 point days and up 500 point days.... On those big down days it was my BOND portfolio that was going UP. So I look at the money and think -- Okay -- I have "X" amount of dough - part of it was down X and part of it was UP X... so overall -- not too bad.
We go to some cocktail party -- and some guy starts yapping about how much he's made doing blah blah blah.... and you compare yourself to him and think "WTF! I'm only up 10% and this bozo is doubling his money". Ask yourself to make a note and check back on how well he's doing next year and the year after that. Usually they disappear into thin air and you never see him again. It's the classic tortoise and the hare.... Ya just want to win in the end - not just for tomorrow. Diversify. Invest, don't trade yourself to death trying to chase the next hot deal.   |
Great points , as usual...
I rode that train last year, and to be honest, I think 2012 will be more of the same..
So , as today is going, I am getting a diversified hammering across the board..
So I always preach that it is not the balance at at given moments, but the dividends, and total performance of the portfolio over time, What will I do ??
Nothing...I will not watch the balance and go on with the day..Yesterday was Wine Country and Napa/Calistoga...
No Trading or running around...Last year had those 500 point ups and downs.
And i told you before , I was still up at years end, and I got to spend all this money too..
So today is not one of those days, but not a day to write home about..
So, I follow the course...And yes, slow and steady wins the race..With a dash of roller coaster in between..
