首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
When the Dow rockets 300 points or the stocks of retailers, say, get decimated, I devour the news. Here’s my admission: I’m a bu
When the Dow rockets 300 points or the stocks of retailers, say, get decimated, I devour the news. Here’s my admission: I’m a bu
admin
2013-08-05
68
问题
When the Dow rockets 300 points or the stocks of retailers, say, get decimated, I devour the news. Here’s my admission: I’m a buy-and-hold investor, and a lazy one at that. My employer prohibits us news folks to trade equities on a short-term basis, but even if it didn’t, I’d still buy and hold.
The bulk of my portfolio is in two retirement accounts, and neither stock-market gyrations nor major financial earthquakes prompt me to tweak my allocations. I simply hold a fairly routine mix of low-cost U. S. and international-stock mutual funds, plus a bond fund, and I stick to it.
Sure, the markets get volatile but I figure that, eventually, average historical returns will work in my favor. And, to my mind, stock-market trading, if you’re not spending many hours a week working on it, is little more than a guessing game.
The fact is, a buy-and-hold investor with a decently diversified portfolio should celebrate her ability to remain firm in the face of financial-news tidal waves which prompt many, less staunch, to jump in and out of investments, often at the worst possible time.
Some might say the staunch investor is akin to a passenger on the Titanic, refusing a lifeboat to safety due to misguided loyalty to the idea of "buy and hold." But as long as three prerequisites are satisfied, that investor is among the most prudent savers around: a well-diversified investment plan, invested in low-cost index funds, with a long-term outlook.
In fact, if you’re not going to be an active, pay-attention-every-day investor, setting up a simple plan and then forgetting about it may be the best retirement-savings decision you make. "What is often problematic is the middle ground People will set something up and then follow it intermittently and on a whim make changes," says John Nofsinger, associate professor of finance at Washington State University and author of "The Psychology of Investing."
Those who follow the markets tangentially but don’t take time for deeper analysis tend to buy high and sell low. If, like me, you’re not going to spend time daily on your plan, then set it and forget it.
Note that, unless you have a rock-solid pension plan from your employer and significant other assets, you’re going to need to invest Interest rates on cash simply won’t get most savers to a well-funded retirement.
What to do?
1. Create a plan. That means investing in low-cost index funds covering the U.S. stock market, perhaps 10% to 25% of your portfolio in international stock funds, plus exposure to bonds (a typical scenario is 70% or 80% in stocks and 30% or 20% in bonds), and perhaps some portion in a money-market or cash-type account. Keep in mind that your focus is not to beat the market.
2. Once your plan is in place, ignore it. "I do virtually nothing. I do less than I do for my car. There’s not even a need to change the oil," Mr. Statman says. If rebalancing worries you, don’t even do that except perhaps once every few years. And make sure you focus on getting back to your investment plan, rather than chasing the winners of the moment. "If the stock market went up that year and maybe bonds didn’t, so you take a little out of the stock market and put it in bonds to reallocate to where your targets originally were, I think that’s a good strategy," Mr. Nofsinger says.
3. Accept risk. Yes, stock-market investing is risky. But over the long haul, investors are rewarded—if they adopt a long-term outlook and diversified investment plan. "Risk is not something you want, but oftentimes risk does go hand in hand with return," says Peng Chen, chief investment officer of Ibbotson Associates, an investment research and consulting firm owned by Morningstar in Chicago. Keep in mind: Avoid this risk with money you need soon, say, in the next year or two. And remember that the more you invest in one company, sector or country, the more risk you’re taking on.
4. Stay in for the long haul. We have no idea what’s coming tomorrow, and past stock-market performance does not predict future results. But what is your alternative? Stick all your cash in a money-market account, a CD or, slightly riskier, bonds? You are not avoiding risk with this plan, simply shifting to the risk inflation will trump your return.
5. Do what you can. The investment options available through your retirement plan may not be ideal. Invest there for the employer match, but ensure diversification through an account outside your employer plan, perhaps an individual retirement account or Roth IRA.
Why does the author choose to be "a buy-and-hold investor"?
选项
A、Because his employer prohibits him to trade equities on a short-term basis.
B、Because he believes that long-term return will balance out short-term fluctuation.
C、Because he is misguided by the loyalty to the idea of "buy and hold."
D、Because he is an active investor and keeps an eye on stock markets every day.
答案
B
解析
文章第3段第1句…work in my favor表明从长期来看,投资的回报还是让人满意的,B的表述与此句最为贴近,应选B。
转载请注明原文地址:https://kaotiyun.com/show/A74O777K
0
专业英语八级
相关试题推荐
WhichofthefollowingisCORRECT?
WhichofthefollowingisCORRECT?
Thecharacterof______isrepresentativeoftheEnglishbourgeoisieattheearlierstagesofitsdevelopment.
StagesofSecondLanguageAcquisitionStageI:(1)______Period:(1)______1)inthisstage,moststudentsunderstand(2)______th
Teachersandotherspecialistsinearlychildhoodeducationrecognizethatchildrendevelopatdifferentrates.Givenanythingt
Teachersandotherspecialistsinearlychildhoodeducationrecognizethatchildrendevelopatdifferentrates.Givenanythingt
Law-and-orderisthelongest-runningandprobablythebest-lovepolitical(1)_____issueinU.S.history.Yetitispainfullya
Law-and-orderisthelongest-runningandprobablythebest-lovepolitical(1)_____issueinU.S.history.Yetitispainfullya
Israel’snewanti-rocketsystemcanblowupincomingrocketswithrangesof______.
TheHundredYears’Warfrom1337to1453happenedbetweenEnglandand
随机试题
A.病理特征为小而圆的骨组织核心,被反应骨包围B.X线检查表现为病变骨的膨胀,内有蜂窝状骨吸收区,夹杂有钙化斑块C.发生于颅骨,表现为致密的象牙样肿块D.骨性病损白干骺端突出,向偏离骺板的方向生长E.X线检查股骨上段呈磨砂玻璃样疏松病损,无明确界限
归属于五行中"金"的五气是
银行对()未发生收付活动且未欠开户银行债务的单位银行结算账户,应通知单位自发出通知之日起()日内办理销户手续。
明胶制装药用
依次填入下列横线处的词语,最恰当的一组是()(1)南山佛教文化苑是一个新崛起的大型文化和生态旅游园区,依山傍海,园林设计匠心独具,一草一木,一砖一瓦均含禅理,环境_______清静,风景独秀,不失为一个放松身心、休闲养性的好去处。
读中国四大地理区域示意图(图3),回答问题。 北方地区和南方地区之间的界线①由__(山脉)、__(河流)构成,它是我国一条重要的地理分界线。
科学家发现,人体中高密度脂蛋白(HDL)对心脏病有预防作用,每天吸烟超过20支者,体内HDL含量明显下降。如停止吸烟,含量就会增加。HDL含量最高的是瘦子,最低的是胖子,男性在四十几岁时,HDL含量下降,女性则相反,老年妇女的HDI。含量高于老年男性。由此
尺子:距离与()在内在逻辑关系上最为相似。
实践是人的存在方式,是指()
Whatdoesitmeantobeintelligent?Mostpsychologistsagreethatabstractreasoning,problemsolving,andtheabilitytoacqui
最新回复
(
0
)