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Why Stocks Are Riskier Than What Is Claimed By The Financial Industry

Sunday, March 11, 2012 - 5:56 PM
I wrote about Zvi Bodie and Rachelle Taqqu in February. Their new book, Risk Less and Prosper, was a subject of a Morningstar article which described long-term investment strategies with a foundation that doesn't include stocks. Wall Street Journal published an article from these two authors describing their issues with stocks and the investment alternatives. Here are two interesting excerpts.

First, the issue they have with stocks:
Despite the assurances of the financial industry, stocks are always a risky investment, and the longer you hold them, the better your chances of getting blindsided by a downturn. The usual way of mitigating that risk, diversification, holds no guarantees, either

And some of their alternative investment strategy
Separate your basic must-have needs from your aspirations or wants, and create an investment plan that guarantees the basics with inflation-protected, safe investments.

Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Saturday, March 2, 2013 - 4:22 AM
Informative post @Ken, There are several ways to secure the money outside your protection net. For example, there are financial commitment items that secure either major or earnings by using securing techniques including various blends of types.
harreymartinharreymartin9 posts since
Feb 26, 2013
Rep Points: 10
2. Saturday, March 2, 2013 - 1:12 PM

I cant understand a single one of your posts
RicochetRicochet135 posts since
Jan 19, 2010
Rep Points: 366
3. Saturday, March 2, 2013 - 2:40 PM

I cant understand a single one of your posts

Meaning (for Post #1): Heck, I have no idea what I am doing on my investments, they call it all blends, all types, and all techniques to confuse me.:D  Just kidding.

51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427