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Are the following statements
mostly True or mostly False? Let me know what you
think in an email to: steves (at) sancoservices.com. If
you've read The Brainwashing of the American Investor, please
let me know. |
TRUE |
FALSE |
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1) The proper gauge of your Investment
Portfolio Performance is the change in market value over the
course of a calendar year.
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2) Mutual Funds are a safer route to long term investment success than trying to
create your own portfolio of individual securities. |
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3) Profit Takers and Traders hurt the average investor. |
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4) Index funds will always beat
the market. |
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5) The Dow Jones Industrial
Average is comprised of investment grade companies, and generally gives
a clear indication of what is going on in the Stock Market. |
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6) In the long run, investing in
the Stock Market will assure you of keeping up with inflation. |
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7) Annuities are perfect investments at
retirement both for people of limited resources and for the wealthy,
particularly Variable Annuities. |
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8) Technical Analysts can predict
the future movements of the economy, individual securities, and the
Stock Market with a very high degree of accuracy. |
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9) A clear indication that you are
a savvy investor is your use of an on-line deep
discount broker. |
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10) There is no such thing as a
freebie on
Wall Street. |
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| 11) It is important that you take
your tax losses regularly, particularly if you have held the losing
position for less than one year. |
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| 12) Asset Allocation is a strategy
used by investors to move assets from weak markets to strong ones in
order to improve the growth of the Investment Portfolio's bottom line. |
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| 13) "Sell your losers and let you profits run"
is the essence of sound Investment Management Thinking. |
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| 14) Closed End Mutual
Funds (CEFs) are not popular with Wall Street professionals because they are
inherently more risky than normal Mutual Funds. |
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| 15) It's better to buy
shorter
duration corporate and municipal bonds, because their market
value
doesn't fluctuate as much with anticipated changes in the direction of
interest rates. |
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| 16) No Load Mutual Funds
are particularly good
for investors because the mutual fund company does not charge anything
for it's services. |
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| 17) Packaged Investment Products are designed with a sincere concern
for the financial well being of the average investor, and are good for
everyone. |
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| 18) Stock Brokers are well trained
in all aspects of investing and investment portfolio management.
Consequently, a significant portion of their compensation is tied
directly to how well they help their clients develop high quality,
properly diversified, and goal directed portfolios. |
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| 19) Smart Cash is an integral part of any Asset Allocation
Formula because it allows investors to time the market
successfully. Professional market timers know precisely when to move
into or out of cash in anticipation of the next major directional
change in the market. |
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| 20) Buy and Hold
continues to be the proper investment strategy for most individual
investors. |
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| 21) It is a well known fact that
there are certain Core Portfolio issues that belong in all
investment portfolios if long term success is to be expected. |
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| 22) Every properly diversified portfolio will have up to
5% in each of these areas: miscellaneous speculative
opportunities, gold or other commodities, small cap stocks, and global
index funds. |
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| 23) Zero Coupon Bonds are an
important part of the fixed income portion of the investment portfolio,
especially when retirement is contemplated within five years or so. |
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24) These are
the FOUR most Important Investment Ideas:
- Keep commission costs down;
- Establish a target for taking profits;
- Buy high quality securities;
- Increase annual income.
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| 25) If an investor can learn to control his own
Greed and Fear, he will have a much better chance of investing successfully. |
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| 26) The second step in every
stock purchase should be the establishment of a Stop Loss Order. Such an order assures you that your losses will be limited to a
specific percentage of your purchase price. |
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| 27) Investment Grade Value Stocks
will be the next red hot market sector. |
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Note: Only two of these statements are completely true. The correct
answer will win you a free copy of The Brainwashing of
the American Investor. |
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