Monday, November 05, 2007

Buttonwood | To infinity and beyond | Economist.com

Buttonwood | To infinity and beyond | Economist.com

Been told that markets always go up? On average they do, though sometimes they can go down and stay down for a long time. This is called risk and investing in stocks carries the risk that stocks will go down and stay down for a long time. This is why diversification is so important.

Interesting article, don't get me wrong, I'm not being alarmist here. I think stocks are a great place to hold money long term, but you need to understand the risks involved first.

Scott Dauenhauer, CFP, MSFP, AIF
www.meridianwealth.com
949-916-6238