Investment Truths and Myths

Truths

Buy when there’s blood in the streets.

There is no “free lunch.”

Invest in a “no-brainer” with great caution.

Diversification, if well considered, can reduce overall investment risk.

“Story” investments should be avoided.

Don’t fight the Fed.

“Trading” is not synonymous with “investing.”

A rally of 30% following a 30% decline does not make one “whole.”

Bonds never lose money.

Money market (and other short duration investments) never lose money.

Rating agencies never err.

The deficit can be reduced by printing more money.

“Blue Chips” are the safest stocks to own.

If I hold on to my losing stock long enough, it will recoup its value.

Successful investing is a leisure time pursuit.