doushioukanaa
Recycles dryer sheets
- Joined
- May 9, 2006
- Messages
- 52
New Thinking said:Diversification may be helpful, but it is only $14,000..It's the jumping around due to impatience and yield chasing that causes the average investor to lose money even when the stock market is flying..I would just sit tight. Don't go chasing returns.
I don't understand New Thinking's advice. First you downplay the importance of diversification, then you advise against yield chasing, then you suggest the person sit tight in a specific asset class, presumably to chase anticipated above average yield.
Bottom line, zaniew should diversify. You can achieve diversification even if "it is only $14,000." As difficult as it may be to do, you should pretend the poor performance never happened and just invest the funds wisely, and as you would if you received it as your first cash windfall.