We live in an uncertain world. Economies grow or slight in recession. Interest rates rise and fall. Markets go up and down. And there are no warnings of what happens next. But there are 5 principles that have stood the test of time.
Smart investors follow these principles.
1. Don’t try to forecast the economy.
2. Don’t time the market.
3. Save as much as you can, for as long as you can and start as soon as you can.
4. Asset allocate your portfolio.
5. Rebalance your portfolio.
In a nutshell, investors should ignore the noisy calls of economic forecasters and market timers, save more, asset allocate properly, and rebalance annually. This will keep you on track to reach your most important financial goals.
Sven Franssen