Sunday, November 23, 2014

How To Make Yourself Look Damn Pro

Ben Carlson from A Wealth of Common Sense nails this one on the head directly.

Want to look like a pro? Change your timeframe. That's it. Anyone can look like a pro now! No need to thank me, you're all most welcome.

People that slap around gold bugs cough up the 40% drawdown statistic since its peak in 2011.
Now expand that time frame to start from 2000 and you get a 350% increase in the price of gold.
Or start from 1970 and gold has been up 7% annualized a year.

Assets go up and down. It shouldn't be a surprise to anyone. Just look at this chart, there are no consistent winners or consistent losers.

And yes, even commodities can be a good "investment" over time. If I can sell it more tomorrow than I bought it for today, then by golly, give me as much as I can take. It could be monkey poop for all I care. Because, I don't really care. Whatever makes money, well, that is what works.

That said, it is of course okay to decide to stick with just a few asset classes or styles of investing. There is no holy grail investing solution for everyone. Do what you are comfortable with. It's your own money anyway.

Personally, after doing some thinking and reflection, I think I am very comfortable and happy with my experience with REITs so far, so I am definitely going to focus my efforts on researching and investing in them.

There is more than one way to where you want to go. You just need to solve a simple navigation question.

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