Prosperity Trek by Prosperity Concierge » Investment Environment

Trek III: Know Your Risk Tolerance

Prosperity Concierge — Wed, 08 Jul 2009 22:33:39 +0000

The term “risk” refers to the probability that an event will occur.

The event can be positive or negative. However, we generally associate risk with the probabilities of negative events.

Financially, risk is defined as volatility. Asset classes have varying degrees of volatility. A dollar bill will not fluctuate in value whereas a gold

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Trek III: Investing Fundamentals

Prosperity Concierge — Sun, 05 Jul 2009 23:32:33 +0000

There are some “truths” that investors should know. They are fundamental to investing. To know them gives you insight that you can leverage to make better day-to-day financial decisions.

Treating Funds Differently Based on Source

This is a financial trap where the source of the money affects your investing mindset. An example of this

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Trek III: Your Investing Environment

Prosperity Concierge — Sun, 05 Jul 2009 21:09:45 +0000

To invest properly we need to understand a couple of truths about our investing environment.

The Efficient Market

Markets are efficient. When we know something others do too. As a result the market is already priced to reflect that knowledge.

For this reason, when we read some information from a public source (newspapers, magazines, internet) we

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