ABCs of a Market Correction

a) high grade is not necessarily high quality;

b)what looks like a duck may not quack like one;

c) don't swim in the deep end of the pool;

d) losses can be viral;

e); diversification is not a panacea; and every cloud has a silver lining. 

 

It isn't very pretty out there, but there are lessons for the next time.

With all that happened last week, we are all learning -- or relearning -- some very important lessons.  Today's New York Times has a terric article on these lessons by Gretchen Morgenson, entitled "Summer School for Investors is in Session".

If you can't log in, buy a copy.  It is worth reading. 

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

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Comments

  • Anonymous

    July 30, 2007

    This went right over my head.

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