Investment Lessons You Need to Know
By David Kreinces, ETF PM (5/10)
The ‘90s were one of the best decades in history for the S&P 500. The main US stock index returned almost 390% or roughly 17% annually. Back then, many people thought investing was easy. Today, not so much.
During this past decade, real estate and emerging markets both delivered total returns over 150%, while the S&P 500 fell by -9%, making it one of the worst in history for developed country equities. Investors eventually learn that nobody can predict the future consistently and that asset allocation typically drives performance.
Einstein called compounding the “Eighth Wonder of the World” because a small difference in your annual return makes a huge difference in your total assets long-term. As such, these investment lessons are priceless because they are extremely expensive to learn firsthand.
So, what do you need to know?
- Learn about the leading investment strategies.
- Employ strategic core diversification.
- Focus on the right data.
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