Stocks are far less risky than you think
February 17, 2014
Market Watch - It’s important to note that David Blanchett of Morningstar, Michael Finke of Texas Tech University and Wade Pfau of the American College were not talking about holding any specific individual stocks for the long haul, just indexes or baskets of stocks. As Blanchett noted on my radio show this week, “I wouldn’t recommend just going out and buying [General Electric] GE+1.18% , I’d recommend buying a broad index.”
Most people try to reduce risk in their investment portfolio by seeking safe havens like bonds, or by moving money out of the parts of the market that scare them at any given moment.
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It’s important to note that David Blanchett of Morningstar, Michael Finke of Texas Tech University and Wade Pfau of the American College were not talking about holding any specific individual stocks for the long haul, just indexes or baskets of stocks. As Blanchett noted on my radio show this week, “I wouldn’t recommend just going out and buying [General Electric] GE+1.18% , I’d recommend buying a broad index.”