Ten Investment Risk Minimization Strategies

In the recent financial crisis, a very small percentage of (I-bought-my-home-to-live-in) mortgagors stopped making their payments. Still, the hysteria over the bursting housing bubble (i.e., lower market values) led to financial institution road-kill because of ridiculous accounting rules.

When the dot-come bubble destroyed “new economy” gladiators in a gory spectacle destined to repeat itself over time, what investment portfolios cheered unscathed from the coliseum bleachers?

If you reduce the amount of betting in your portfolio (and throw out politicians who don’t have a clue about the workings of free markets) you can safely navigate even the choppiest seas that the market, interest rate, and economic cycles roll your way.

Most investment mistakes are caused by basic misunderstandings of the securities markets and by invalid performance expectations. Losing money on an investment may not be the result of an investment sandbar and not all mistakes in judgment result in broken propellers.

Errors occur most frequently when judgment is rocked out of the boat by emotion, hindsight, and misconceptions about how securities react to varying economic, political, and hysterical currents. You are the commander of your investment yacht. Use these ten risk-minimizers as investment capital life preservers:

For “the rest of the story”: http://kiawahgolfinvestmentseminars.net/Inv/index.cfm/6997

Steve Selengut

http://www.marketcycleinvestmentmanagement.com/

Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”