| Stocks, bonds, index funds; averages, recessions, | | | | Core Portfolio Securities that belong in all |
| market rallies and corrections; mutual funds, | | | | investment portfolios if long-term success is to be |
| technical analysis, financial statements; | | | | expected. |
| commissions, taxes, and discount brokers. Just | | | | 15. There is no such thing as a freebie on Wall |
| how much do you know about investing, or | | | | Street. |
| perhaps a better question: is there any "know" in | | | | 16. Closed End Mutual Funds (CEFs) are not |
| the investment vocabulary? So many terms, | | | | popular with Wall Street professionals because |
| ideas, and strategies; so little time and money! | | | | they are inherently more risky than normal mutual |
| Here's a list of thirty mostly-true or mostly-false | | | | funds. |
| comments for you to kick around with your | | | | 17. Packaged Investment Products are designed |
| friends and fellow investment bloggers: | | | | with a sincere concern for the financial well being |
| 1. Every Properly Diversified Portfolio will have up | | | | of the average investor, and are good for |
| to 5% of its market value in each of these areas: | | | | everyone. |
| miscellaneous speculative opportunities, gold or | | | | 18. Zero Coupon Bonds are an important part of |
| other commodities, small cap stocks, and global | | | | the fixed income portion of the investment |
| index funds. | | | | portfolio, especially when retirement is |
| 2. Financial Professionals are well trained in all | | | | contemplated within five years or so. |
| aspects of investing, investment portfolio design, | | | | 19. The second step in every stock purchase |
| and management. Consequently, a significant | | | | should be the establishment of a Stop Loss Order. |
| portion of their compensation is tied directly to | | | | Such an order assures you that your losses will |
| how well they help their clients develop high | | | | be limited to a specific percentage of your |
| quality, properly diversified, and goal directed | | | | purchase price. |
| portfolios. | | | | 20. The IGVSI tracks the market value of a small |
| 3. Buy-and-Hold continues to be the proper | | | | but elite group of New York Stock Exchange |
| investment strategy for most individual investors, | | | | equities. |
| especially if automatic reinvestment of income is | | | | 21. The Four Most Important Investment Ideas |
| part of the package. | | | | include: buying only high quality securities, |
| 4. It's a better Investment-Income Strategy to | | | | diversifying properly, using discount brokers |
| buy shorter duration corporate and municipal | | | | exclusively, and establishing reasonable |
| bonds (rather than higher yielding long-term debt) | | | | profit-taking targets. |
| because the market value doesn't fluctuate as | | | | 22. Profit Takers and Traders hurt the average |
| much with anticipated changes in the direction of | | | | investor. |
| interest rates, and that is the most important | | | | 23. Investment Grade Value Stocks will be the |
| concern with income investing. | | | | next red-hot market sector. |
| 5. If an investor can learn to control his own | | | | 24. "Sell your losers and let your profits run" is |
| Greed and Fear, he will have a much better | | | | the essence of sound Investment Management |
| chance of investing successfully. | | | | thinking. |
| 6. Asset Allocation is a strategy used by investors | | | | 25. The November Syndrome is the partial result |
| to move assets from weak market sectors to | | | | of the interaction of Wall Street institutional |
| strong ones in order to improve the growth of | | | | window dressing and the Infernal Revenue Code. |
| the Investment Portfolio's bottom line. | | | | 26. It is important that you take your Tax Losses |
| 7. No Load Mutual Funds are particularly good for | | | | regularly, particularly if you have held the losing |
| investors because the mutual fund company does | | | | position for less than one year. |
| not charge anything for its services. | | | | 27. Annuities, particularly Variable Annuities, are |
| 8. In the long run, investing in the stock market | | | | perfect investments at retirement both for |
| will assure you of keeping up with Inflation. | | | | people of limited resources and for the wealthy. |
| 9. The proper gauge of your total Investment | | | | 28. Technical Analysts can predict the future |
| Portfolio Performance is the change in market | | | | movements of the economy, individual securities, |
| value over the course of a calendar year, | | | | and the stock market with a very high degree of |
| compared with the change in one of the more | | | | accuracy. |
| respected stock market averages during the | | | | 29. Index funds will always beat the market, or |
| same period of time. | | | | market sector, that they are designed to track. |
| 10. Quality, Diversification, and Income are | | | | 30. The keys to successful investing are Asset |
| considered by many investors to be the three | | | | Allocation using only two investment buckets: |
| basic principles of investing. | | | | Equity and Income, and the development of |
| 11. Mutual Funds have always been a safer route | | | | realistic expectations about their market value |
| to long-term investment success than trying to | | | | performance. |
| create your own portfolio of individual securities. | | | | Investing is as fascinating as it is frantic, as scary |
| 12. The Dow Jones Industrial Average is | | | | as it is exciting, and as intimidating as it is |
| comprised solely of investment grade companies, | | | | satisfying. But perhaps the most interesting thing |
| and generally gives a clear indication of what is | | | | about it is how educationally unprepared most |
| going on in the stock market. | | | | individual investors are for the adventure! Books |
| 13. Smart Cash is an integral part of any asset | | | | have been written, graduate degrees awarded, |
| allocation formula because it allows investors to | | | | and doctoral dissertations presented in most of |
| time the market successfully. Professional market | | | | the topical areas touched upon so glibly above. |
| timers know precisely when to move into or out | | | | Most of you will give your seal of approval to too |
| of cash in anticipation of the next major | | | | many of the statements. Contact the author to |
| directional change in the market. | | | | determine your IIQ. |
| 14. It is a well-known fact that there are certain | | | | |