The stock shareholder is last in line to receive payoff. This is risky and hence deserves the higher return on average than that earned by bondholders, who get their money first.
Diversification over different kinds of stocks asset classes works well over the years and decades, but often quite poorly over weeks and months.
For estimating future returns, rely only on interest and dividend payouts and their growth/failure rates and NOT on historical data.
Home ownership is not an investment. It is a consumption item and it always costs more than renting after taking into consideration taxes and maintenance.
Performance comes and goes but fees from actively managed funds are forever and cannot be surmounted even over long run.
Investment Definition: The deferral of current consumption for future consumption.
A balanced portfolio consists of significant allocations of both stock and bonds.
Nations with the most rapidly growing economies often have the lowest stock returns. In many developing markets, government does not protect shareholder as well as in nations with more established legal systems.
Regard yourself has an average when buying or selling and consider who you are trading against.
Do not trade with any mutual fund that is owned by a publicly traded parent company- Sooner or later the profits for these companies must be paid by its customers.
