8 Basic Components in Investing Time Frame – How long? Short, mid and long term. Tax Consequences – what’s going in, coming out. Diversification/Asset Allocation – lower risk, potential enhanced returns. Liquidity – at least to some percentage of accessible cash equivalents A Long-term perspective to keep your anxiety, fears and worries in check. Not becoming sentimental and holding an investment too long The “Big 3” investing tenants: Buy Low, Sell High & Hold when in doubt Having a specific investment plan and knowing what each choice is       supposed to do.   Some Basic Facts Market declines happen. There have been a number of bear markets over the past 30 years; however, the overall long-term trend has been up. Sometimes corrections are good for the market. Corrections tend to be shorter and less severe than bear markets. That’s usually why investor’s refer to them as “buying opportunities”. Most often the market’s wrath descends on companies with very high stock prices relative to their earnings, or to business concepts that look great in the euphoria of a booming market, but in the end appear to have very little fundamental support. Market timing doesn’t work. In an ideal world, we would all   Read more…