Q&A

Steve –

I am such a neophyte in the area if investing.  It is new to me that I am taking on information like a camel with water and yet I think most of the information is useless and only filling what was for so long empty. I do not yet know what the information means or how to utilize it. Like the fact that IBM’s choices somehow predict what the S&P’s trend will be, 75% of the time. Is this useful information, is is trustworthy, is it taking up space in my brain where something of true importance should reside?

I truly just want to be able to look at the stocks I am now “committed” to and be able to tell whether they are going up or down and get a sense whether to leave the stocks be for 5 years or sell them etc. (is this to someone’s benefit other than mine?)

Thanks, Jim.

Jim –

It is impossible to know whether individual stocks will go up or down – over any period of time.

As we have discussed, your best bet for a good rate of return with minimal risk is a risk-appropriate, well-diversified portfolio of low-cost mutual funds.

You are worrying way too much about things that you have absolutely no control over.  You need to focus on the things that you can control and do them well.

Steve

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