Revenge of the Buy-and-Hold Nerds
Right now, we may be in the throes of a correction, spurred by the debt crises in Greece and other European nations. Bonds, too, have had a big run, and they’re vulnerable. Cash isn’t earning much, and commodities have been moving pretty much in line with stocks for quite a while.
But isn’t that the whole point? We just don’t know which asset class will do best in the months ahead. Very few predicted bonds would do so well starting in September 2008, and few called the current stock market rally, either. That’s why true diversification and staying the course are the best paths for most of us.
So, the next time someone touts a foolproof trading system or tells you that silver coins or junior Canadian gold mining stocks are the only path to prosperity, just remember what the immortal James Brown might have said: Say it loud—I’m nerd and proud!
Howard R. Gold is executive editor of MoneyShow.com. The views expressed here are his own.