Monday, March 01, 2010

The Market Is Like A Puzzle

As one puts together a puzzle certain pieces will fit and others won't depending how far along one is in completing the puzzle. Investments aren't much different. Certain types of investments will fit into ones portfolio based on where the economy is in the economic cycle.

I read an interesting post today by Tadas Viskanta, the author of the site Abnormal Returns. His post titled, Play the Ball where it Lies, offers an interesting perspective for investors as they evaluate buy and hold decisions. One premise in the article notes that the markets are rarely "normal" so an investor needs to know why they are making specific investment decisions. At the end of the day, an investor should know why they own what they own. The brief article is a worthwhile read.


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