How To Kill Your Limiting MONEY Beliefs To Unlock Abundance | Mark Matson
The School of Greatness
Smart Investing: Avoiding Speculation and Toxic Investments
Investing should prioritize stability and growth rather than speculation; any investment made with the mindset of gambling is detrimental to achieving significant financial goals, like saving for retirement. Academic research advocates for a globally diversified portfolio spanning over 100 countries to mitigate risk. Instead of stock picking, it's advisable to invest in structured or index funds that cover various segments of the market, allowing for a balanced approach. Regular portfolio rebalancing is crucial, especially after market downturns, to maintain the desired asset allocation. Implementing a decision control system helps investors maintain discipline and avoid emotional reactions that can lead to poor investment choices. Toxic investments, such as Bitcoin and hedge funds, lack intrinsic value and often operate on speculative principles, leading to financial losses. Investments like commodities, including gold, are also categorized as toxic due to their volatility and lack of reliable returns.
