Two of the most basic laws of economics:
1. There can be no reward without risk
2. Gaining an advantage over skilled and knowledgeable competitors in a free market is extraordinarily difficult.
The prices of stocks and bonds reflect people's hopes and fears about the future, which means they can easily wander away from the realities of the present. Efforts to purge financial markets of these attributes impair the efficiency with which financial assets perform the broad social function of serving as a store of value. Liquidity, low transaction costs, and the freedom of investors to act on information are essential to that function.
Stock future prices can't be predicted! Even by the best and most brilliant people in finance and investment!!!
Risk means that more things can happen than will happen - Elroy Dimson
Diversification depends more on the way individual assets perform relative to one another than it does on how many assets the investor owns.
The prices of stocks and bonds reflect people's hopes and fears about the future, which means they can easily wander away from the realities of the present. Efforts to purge financial markets of these attributes impair the efficiency with which financial assets perform the broad social function of serving as a store of value. Liquidity, low transaction costs, and the freedom of investors to act on information are essential to that function.
Stock future prices can't be predicted! Even by the best and most brilliant people in finance and investment!!!
Risk means that more things can happen than will happen - Elroy Dimson
Diversification depends more on the way individual assets perform relative to one another than it does on how many assets the investor owns.
