Easily clip, save and guide to investing in gold and silver michael maloney what you find with family and friends. Easily download and save what you find. Stocks — Part 1: There’s a major market crash coming!
I just finished an article in Money Magazine and reading this magazine is, in and of itself, enough to make me testy. This particular piece is an article on page 87 of the March 2012 edition interviewing Dr. Lo is an economist and finance professor at MIT’s Sloan School of Management. There are a couple of impressive photos of Dr. I’m going to tell you what he says and why he’s wrong.
Oh, and that major market crash that’s coming? I’m also going to tell you why it doesn’t matter. Lo, I have no quarrel with most of his ideas. In fact, it is very possible the good folks at Money didn’t quite get it right. Perhaps they simply didn’t put the emphasis correctly. Lo and I will have a few laughs over a cup of coffee on this. The idea is that with new trading technologies the market has become faster moving and more volatile.
But most investors did not wait for the dust to settle. We’ll come back to this in a moment. Money: So what choice do I have instead? We’re in an awkward period of our industry where we haven’t developed good alternatives. Your best bet is to hold a variety of mutual funds that have relatively low fees and try to manage the volatility within a reasonable range.
You should be diversified not just with stocks and bonds but across the entire spectrum of investment opportunities: stocks, bonds, currencies, commodities, and domestically and internationally. Money: Does the government have a role in preventing these crises? It’s not possible to prevent financial crises. So, markets are efficient except when they’re not.