Investing

The Investment Risk-Return Correlation

by Millionaire Mommy Next Door on August 18, 2010

in Investing,Mailbag

Tweet Q: Pam asks, “After my portfolio value dropped by 40%, I panicked and pulled out of the stock market. I have $150,000 sitting in my savings account, earning squat. I know I should put it back to work, but with the state of our economy, I don’t know what to do with it. Any […]

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Tweet I’m sure there are investment brokers worth their high commissions and fees, but I haven’t experienced one. I burned through five brokers before realizing that no one cares as much about my money and my future as I do. Brokers are salespeople. Naturally, they care more about their bottom line than mine. Most people […]

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Tweet I’ve been receiving emails lately from people asking questions like: “Is the stock market experiencing a true recovery or is this just a bear market rally?” “Do you think we’ll see a V, W, U or L shaped recovery?” “Should we expect deflation or inflation?” “When will my house be worth as much as […]

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Tweet In response to my last post, Would You Ditch A Car For $1,000,000?, a reader made the comment: “As a grad student in an urban area, I don’t have a car (nor could I afford one) and I use public transit. … I wish there was a “big ticket” item like that that I […]

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Tweet A study found that households with 3 or more cars are the single largest group among American car owners. The national average is 2.28 vehicles per household. Obviously, Americans are very much in love with the automobile. According to the AAA, the average American spends $9,369, excluding loan payments, to drive ONE medium sedan 15,000 […]

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Tweet Rebecca commented: I enjoy these posts – thanks for adding a voice of reason given the vast propensity to imagine the solution to the problem is doing more of the thing that caused the problem. We’ve collectively been telling ourselves the same stories so long it’s hard to ram home still that they *are* […]

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Tweet More specifically, does the commonly given investing advice to “buy and hold” really work?  Or have the rules changed? During the past several decades, the prevailing advice has been something like this: “Diversify your investments, buy stock in good companies, and hold them until you retire. The value of stocks (and real estate) always […]

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