It’s true: Understanding the Bell Curve Can Help Your 401(k)
I will stress again: there seem to be a LOT of people in the investment business who want to complicate the investment process. It does not need to be overly-complicated. A financial planner can help you invest smarter and give you 401-k advice.
This is part II of the lesson on bell-curves and how they can help you. Here you can find part one of Bell Curve Money Management.
With bell curves, 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 the ENTIRE MARKET is skewed way over to the right, DO NOT BUY it. When we refer to the market as “over-bought,” this is what we are looking at.
And, when THE ENTIRE MARKET 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.”
Watch this short video (part II) on the Bell Curve:
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.
