Jaime, it just really isn't that tough!
It is not a function of time, but understanding. Just go out to CBOE and see how much of each $100 that goes into an Index fund, goes to buy MSFT and GE vs. the bottom 100 in the Index. I cannot say that I've totally mastered the math game, but it is a math game.
If you read my post to SO, you will gain a historical perspective of this issue. Frankly, I really have tried to make it more difficult over the last four years plus of paying tuition to the Investment Institute of Higher Learning.
But, the issue remains that each individual must define what effort it is that he/she is willing to donate to this cause, what time horizon they have, and to understand that it was Einstein that noted that compound interest was the greatest mathematical formula ever devised. This formula only involves 3 variables -- principal, time and rate of return. Then, each of us need only analyze our personal position on each of those 3 issues and come to a implemented conclusion.
Fairly simplistic, really! In the meantime, we will sit and discuss on this thread whether the Market is going up or down. Who really cares, except those invested in Market instruments?
TB |
