The Math of Losing
It has been said that the three most important rules of investing are: Don’t lose your money! Don’t lose your money! Don’t lose your money! The reason this is so important can be seen in the math of losing:
Diversification: When It Doesn’t Work
Diversification: When It Doesn’t Work The most common description of diversification is to not keep all of your eggs in one basket. However, Andrew Carnegie, steel magnate of the late 1800s, had a very different philosophy regarding diversification, “keep all your eggs in one basket and then watch that basket very carefully.” Carnegie was mighty successful, having made so much money by age 65 that
Deflation in the Air?
Deflation in the air? I first talked about the potential for deflation in 1998, in connection with my economic take on Y2K, and its potential for disruption of the markets. As time goes on, more and more of the economic ramifications I predicted 5 years ago have indeed happened. Large stock market decline, bonds performing strongly, and gold being something to avoid for several years (gold