Whenever a key economic indicator shows weakness in the latest monthly update, the usual worries arise. No explanation required in the current environment and so today’s retail sales report for April will draw a fresh round of dark predictions from the usual suspects. And perhaps they’ll be right this time. But for now, it’s still premature to argue that the modest growth train has derailed, even if it looks that way by focusing on the latest data point.
Daily Archives: May 13, 2013
Boring, Diversified, And (Still) Tough To Beat
Most investors suffer high fees and earn low returns. There are no sure-fire solutions, at least for the second problem, although playing defense by way of investing in a broadly diversified portfolio across the major asset classes with low-cost index products is a good start. This isn’t a silver bullet, but history suggests you can do quite well with this simple strategy. And if you add in a bit of rebalancing, you’ll probably do moderately better still. Not tomorrow, necessarily, but through time the odds usually stack up in your favor with this strategy. This basic advice drives the financial industry crazy because it sounds incredibly easy and doesn’t cost much. It’s hard to charge a lot for a strategy that requires no skill or forecasting prowess. But the results speak for themselves.