Risk Parity Radio Episode 9: How To Choose Investments Using A Process And An Application To A Preferred Stock Fund
Aug 20, 2020
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Episode notes
Avoid Chasing Hot Investments
- Avoid picking investments based on recent hot performance, as short-term returns mislead.
- Look for about 25 years of data to accurately assess a fund's quality.
Beware Conflicted Financial Advice
- Beware of financial advice from conflicted salespeople whose priority is commissions, not your benefit.
- High marketing costs of financial products often indicate high fees embedded in those products.
Ignore Market Predictions
- Do not base decisions on predictions about future interest rates, taxes, or elections.
- Financial news often focuses on unverifiable forecasts, which are poor bases for investing.