When people buy the hottest stocks or the hottest funds, they end up having less and less diversification.
With a 401(k), people don't realize how much they can save in taxes. They're clueless.
People shouldn't chase returns. The average investor looks back at returns and buys based on performance. But people have to look at the worst-performing sectors, not the best-performing ones. That's where the smart investor goes.
People should look at this market as a great learning experience. The best learning experience of how much risk you want to take is going through a down market.
It sounds like a broken record, and it's boring. It's something we definitely don't want to keep rubbing in people's faces. But it goes to show that diversification works.
I have a feeling this market is going to stay very volatile. But it's day-to-day volatility. It scares you. but it shouldn't change your investment strategies.
For small investors, they probably aren't the place to be.
If you're not willing to invest more in it, maybe you should sell and invest somewhere else.
In the last several years there hasn't been much of a downside. There hasn't been much of a downside, so people have been spoiled. They don't have a clue as to how it really works.
For people who are looking to get into this market, they probably should not have more than 20 percent in tech.
