How is the stock market today, Capitol Region investors? The Dow Jones index posted its tenth straight higher finish--14,539--on Thursday as stocks continued to rally on the back of improving outlook for the U.S. economy.
It is the longest winning streak for stocks in 16 years.
Guaranteed: the streak will end and prices will come down. And then rise. And then drop. Like a cliff with steadily rising peaks and valleys.
How to win at the money game?
- Invest in mutual funds with professional money managers. A well-run mutual fund has averaged just under a 10% return over 80 years. Mutual funds pool assets a keep investments under constant supervision.
- Use dollar-cost averaging. Invest a certain fixed amount each month, regardless of what is happening in the stock market. No guessing when to invest and you will benefit by buying fewer units when prices are high and more units when prices are low.
- Invest with discipline. Experts say market "timing" is a bad way to invest. The key is to maintain a long-term view and stay focused on your goals.
- Diversify. Because there is no single, perfect stock, build a portfolio by balancing a variety of investments.
Schenectady private investor Shele Hamill works with professional money management, despite the fact that she has a degree in finance. "There are professional, ethical money managers, despite Bernie Madoff and Ponzi. They do well by me and can help families grow their money--which is essential."
Dave Balog teaches money essentials to families and businesses. 355-0967. dbalog99@gmail.com
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