Discussion in 'The Economy' started by Johny_come_lately, 18th Oct, 2011.
Academic R/D and realities
All of lessons for index investment are needed to remember. However investment should not be dogmatic.
If we buy at a historical peak and leave it for 10 years, we could still be losers, even statistically "Long term investors reap the rewards." For 100 XAO, 10 years are nothing but it could set the basic tone for your life. Timing is difficult but roughly right about the price at the right right is a matter you have to. Funds tend to tell half truth for us to put the money in for their fees.
It is very true XAO has the historical upward trend in last 100 years but it is also true that if you bought at 1960 and held for 15 years you still could get nothing. Market after stellar upward trend would be flatted if not crashed much lower we expect.
It is very true market recover takes more time than crash. So it is critical to know we could hold too long without reward. Buying and holding has its own catches. Future return is impossible to be predicted. However we all need some future return and could we get it without predicting exactly what will be in the future but roughly right?
Market is not a place to believe and win but find the limitation of our belief and get plan B in place in case the catches just try all to break us down!
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