It really IS true:
An Idea Learned in High School Can Actually Help You Make Better Investment Decisions
Yes, some of the concepts discussed way back in high school CAN make us better investors. You do not need to be a financial advisor to understand them either! But there seem to be a LOT of money managers in the investment business who want to complicate the investment process.
If you remember the concept of the bell curve from high school, employing HOW a bell curve works – could really help you become a better investor.
When it comes to bell curves, just remember, about two-thirds of the time most of the results you are examining are hanging out somewhere near the middle of the bell curve. Yes, there are times when things get really skewed way over to the right, and times when “the curve” gets skewed way over to the left. So, here’s a clue:
On a bell curve, when something is skewed way over to the right, DO NOT BUY it. The item can be considered “over-bought.”
And, when is skewed way over to the left side of the bell curve, you may want to think about investing. Why? Because it is considered “over-sold.”
Have I lost you yet? We need to focus on keeping investment concepts simple. That’s the name of the game for financial advisers. Watch this short video and see what I mean:
If you are relying on a blog post for specific investment advice, you are making a huge mistake. Please speak with an investment adviser before making ANY investment decisions.
If you do not have an investment adviser, we encourage you to contact Mullooly Asset Management at 732-223-9000, or through our website. Under no circumstances should the content discussed here to be considered specific investment advice.
I would also add the following: Past performance may not be indicative of future results. Therefore, no current or prospective client should assume that the future performance of any specific investment or investment strategy will be profitable or equal to past performance levels.
All investment strategies have the potential for profit or loss. Changes in investment strategies, contributions, or withdrawals may materially alter the performance of your portfolio. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for an investor’s portfolio.