Your latest portfolio statement may show a decent overall return and you may be tempted to leave it at that, but there's one step that can boost your return significantly over time.
Do you know what's going on with each individual investment? Since you're reading this blog, I'll assume your portfolio consists of maybe half a dozen different kinds of investments. As the economy and other circumstances change, they may not all have moved in the same direction.
It is likely that one part of the economy has been in favor while another has been struggling. That gives you an opportunity to harvest some gains in one sector and pick up some bargains in another. When you do this periodically you will consistently buy low and sell high without letting emotions guide you.
No comments:
Post a Comment