Investing Principles Revealed

At this point in two thousand six, an investor who wanted to seek safety could buy a ten year treasury note yielding close to five %. Now we think some of that inflation is temporary, but it's unclear how much treasury buyers appear to be willing to settle for sharply negative yields after inflation. For me, the key to savings is still stocks. Seek out tax advantage accounts whenever possible. Keep fees low. Diversification matters. But many treatments of the topic make it sound as though more is always better. One analysis by the c f a institute found that when investing in large companies, there was little risk reduction gained by diversifying beyond 15 stocks. For small companies, 26 stocks was