For people with high beta, now might be a good time to remove a bit of money in the market and sell stocks , even if it's an optimist. Remember that your human capital-their monthly salary is the dividend of this capital is already "in the market" and maybe could not afford to mess with everything.
In fact, I think if its beta is certainly above 1
probably should have little or nothing invested in stock trading for dummies during the first or even the second decade of their working lives. You belong in the bonds. Then, paradoxically, and against common belief, as you get older and turning part of risky human capital into financial capital safer will finally afford to allocate a portion of their savings to riskier stocks.
Reassess your insurance. Human capital is not only influenced by the stock market. It is vulnerable to many other factors. I refer to the death, disability and long-term illness.
Start early. There are steps people can take to reduce the level of risk and sell stocksin their investments, but should deploy as early as his college years, and perhaps even earlier.
Recall that the dividends they receive from their stock trading for dummies capital are not solely the result of hard work, innate abilities, inheritance or luck. On the contrary, such dividends can be traced to the investment of time, money and effort during his student years. The skills acquired in this phase are the basis of their human capital. Although some reproach me, I see education as a commodity.
Believe me, learn accounting, microeconomics and business statistics help reduce risk in their financial future. One thing is certain: know your personal beta will help you manage your overall risk more effectively. And that's always a safe strategy.
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