If you are in stock market for long haul, then facing a bull market correction or a bear market is inevitable. And the wrath of a bear market on your portfolio can be devastating or unpleasant at its best. If your thoughts for managing your portfolio are confined to the range of questions mentioned below (in bullet points), then you are missing a bigger point. Individual investors usually get bogged down with questions on individual stock selection and market timing. Some of the common questions would be like:

* Which stocks should I buy?
* When is a good time to buy? to sell?
* Which fund to select? Which manager is better?

More at: http://creating-wealth.blogspot.com/2007/08/impact-of-asset-allocation.html

 

Submitted: Aug 14, 2007    Views: 346    Comments: 3    Likes: 4   


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Comments Received:

Hi Nidhi,

Good article. I've read this before and it does seem like info that brokers and stock analysts don;t want to get out. We've all heard that a low fee index fund beats an actively managed fund over the long run. This just adds further fuel to the claim that trying to actively manages stocks is a losing proposition.

Sam

Posted: Aug 14, 2007

Holden
(Unregistered)

Nice article. Thanks.

Posted: Aug 14, 2007

Hi Sam,

Yeah .. John Bogle's book on indexing delves so deeply on how indexing beats active management. The point is also that a proper asset allocation is important for the stability of the portfolio and for acheiving hte portfolio goals.

Thanks for you comments,

Nidhi

Posted: Aug 16, 2007



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