By Mark Ford Knowing what the current and historic returns are for every type of investment, the smart investor will curtail his ambitions to what is reasonable to expect.
For example, the smart investor plans to get 8% to 12% on his stock portfolio over time. He doesn’t try to get much more than that. He knows that if he does try, he will probably make much less. (Studies show he’ll probably make only 2% to 3%.)
The same is true of every other asset class – government securities, corporate bonds, convertible bonds, natural resource stocks, penny stocks, private placement deals, commodities, currencies, real estate, …read more
