Mohacsy's Safe Portfolio Member Forum

[santafe2]

Some good advice from Barron's this week:

Don’t flee stocks. They tend to outperform other asset classes over long periods, and not just because the Ibbotson chart on your financial advisor’s wall says so. Stocks represent businesses, whereas bonds are financing and commodities are stuff. If businesses couldn’t reliably turn financing and stuff into something more valuable, there wouldn’t be so many big ones hanging around.

Bullishness during downturns can seem naive. There is a tempting intellectualism to the newsletter permabears. But their long-term results are lousy. By all means, worry about war, disease, deficits, and democracy, and blame the left, the right, the lazy, the greedy—even stock market reporters if you must. But try to maintain a long-term investment mix of 60% optimism and 40% humility.