Comments on: The Benefits of Diversification: A Look Back at the Past 20 Years of Stock Market Performance http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/ Helping a unique generation achieve financial independence. Thu, 11 Mar 2010 21:30:32 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: A Visual History of the Stock Market From 1996 - 2007 : Generation X Finance http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-107606 A Visual History of the Stock Market From 1996 - 2007 : Generation X Finance Tue, 24 Feb 2009 00:02:46 +0000 http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-107606 [...] is, that’s fine, but the best thing most people can do is to just continuously invest in a diversified portfolio. If you keep buying even as the market falls, you’re just adding more shares at a lower [...] [...] is, that’s fine, but the best thing most people can do is to just continuously invest in a diversified portfolio. If you keep buying even as the market falls, you’re just adding more shares at a lower [...]

]]> By: gary http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-104039 gary Fri, 30 Jan 2009 15:47:20 +0000 http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-104039 Superb report. Can I ask where you got the data for the period tables? Superb report. Can I ask where you got the data for the period tables?

]]> By: Why Your 4th Quarter 2008 Investment Statements Look So Bad - Blame the First 8 Days in October : Generation X Finance http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-99808 Why Your 4th Quarter 2008 Investment Statements Look So Bad - Blame the First 8 Days in October : Generation X Finance Sat, 03 Jan 2009 20:07:39 +0000 http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-99808 [...] up that statement and get sick to your stomach, you should look at the big picture. Invest smart. Create a diversified portfolio that you’re comfortable with and invest regularly in all market conditions. If you get worked [...] [...] up that statement and get sick to your stomach, you should look at the big picture. Invest smart. Create a diversified portfolio that you’re comfortable with and invest regularly in all market conditions. If you get worked [...]

]]> By: What’s With All These Stories About Retirees and Those About to Retire Losing 50% of Their Investments? : Generation X Finance http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-96884 What’s With All These Stories About Retirees and Those About to Retire Losing 50% of Their Investments? : Generation X Finance Thu, 11 Dec 2008 15:50:41 +0000 http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-96884 [...] in recent years. Many people just a few years ago back in 2003 and 2004 abandoned their appropriate asset allocation in favor of a higher concentration of stocks. After coming out of the decline of 2001-2002, when [...] [...] in recent years. Many people just a few years ago back in 2003 and 2004 abandoned their appropriate asset allocation in favor of a higher concentration of stocks. After coming out of the decline of 2001-2002, when [...]

]]> By: Do you feel heat from financial meltdown? Let’s make the downfall in your favor. http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-89740 Do you feel heat from financial meltdown? Let’s make the downfall in your favor. Thu, 09 Oct 2008 20:44:59 +0000 http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-89740 [...] We all know that diversification is the key but at the same time we are forgetting the risk tolerance. If you are young (in 30s) it’s okay for now to have major portion of your portfolio in high-risk stocks (aggressive approach.) and should phase out as age progresses. Older you are less aggressive (more conservative) approach you should take verses younger you are more aggressive (less conservative) approach you should take. Bottom line: Diversify across and within the different asset classes and frequently (one or twice in a year) assess your risk tolerance relative to your time horizon and align the plan to personal situation in near future. See interesting article: The Benefits of Diversification [...] [...] We all know that diversification is the key but at the same time we are forgetting the risk tolerance. If you are young (in 30s) it’s okay for now to have major portion of your portfolio in high-risk stocks (aggressive approach.) and should phase out as age progresses. Older you are less aggressive (more conservative) approach you should take verses younger you are more aggressive (less conservative) approach you should take. Bottom line: Diversify across and within the different asset classes and frequently (one or twice in a year) assess your risk tolerance relative to your time horizon and align the plan to personal situation in near future. See interesting article: The Benefits of Diversification [...]

]]> By: “Stay the Course” is Becoming a Hard Pill to Swallow in This Market : Generation X Finance http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-89469 “Stay the Course” is Becoming a Hard Pill to Swallow in This Market : Generation X Finance Tue, 07 Oct 2008 15:42:20 +0000 http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-89469 [...] obviously more risk than they are willing to take. It’s important to remember that if you create a diversified portfolio, you’re probably not going to capture all of the gains in a bull market, but more [...] [...] obviously more risk than they are willing to take. It’s important to remember that if you create a diversified portfolio, you’re probably not going to capture all of the gains in a bull market, but more [...]

]]> By: Friends Don’t Let Friends Bail Out of the Market : Generation X Finance http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-88649 Friends Don’t Let Friends Bail Out of the Market : Generation X Finance Tue, 30 Sep 2008 14:41:19 +0000 http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-88649 [...] are probably not invested appropriately for their risk tolerance or don’t have a adaquately diversified portfolio. Remember, the whole point of diversification is to minimize risk while maximizing returns. While [...] [...] are probably not invested appropriately for their risk tolerance or don’t have a adaquately diversified portfolio. Remember, the whole point of diversification is to minimize risk while maximizing returns. While [...]

]]> By: Don’t Compound Your Investment Losses by Investing Less in Down Markets and More in Up Markets : Generation X Finance http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-87795 Don’t Compound Your Investment Losses by Investing Less in Down Markets and More in Up Markets : Generation X Finance Tue, 23 Sep 2008 16:51:19 +0000 http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-87795 [...] throw caution to the wind and carelessly invest your money in anything, because you should still create a diversified portfolio and take advantage of what works best for your risk tolerance. But the last thing you want to do is [...] [...] throw caution to the wind and carelessly invest your money in anything, because you should still create a diversified portfolio and take advantage of what works best for your risk tolerance. But the last thing you want to do is [...]

]]> By: Carnival of Personal Finance | HelloMoney http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-82433 Carnival of Personal Finance | HelloMoney Tue, 12 Aug 2008 01:43:34 +0000 http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-82433 [...] GenerationX Finance shows you in easy, visual format the benefits of diversification [...] [...] GenerationX Finance shows you in easy, visual format the benefits of diversification [...]

]]> By: Russ http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-82385 Russ Mon, 11 Aug 2008 16:02:35 +0000 http://genxfinance.com/2008/08/03/diversification-and-stock-market-performance-history/#comment-82385 Great post. I think this supports the argument, which has been supported by Buffett, to buy everything through low-cost, highly diversified index funds. If you execute and stick with this plan, you'll beat most your neighbors and professional investors. The challenge is having the behavioral discipline to stick with it through thick & thin. Great post. I think this supports the argument, which has been supported by Buffett, to buy everything through low-cost, highly diversified index funds. If you execute and stick with this plan, you’ll beat most your neighbors and professional investors.

The challenge is having the behavioral discipline to stick with it through thick & thin.

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