Stocks for the Long Run Summary Essay

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Investments in the Making
A person oblivious to the world of business would stare at the CNN Money sector of news and would feel almost unaffected by the world’s financial movements. But you sit a businessman in front that television screen, he will watch and listen carefully to every word seeking for opportunities and to be informed on how his investments are doing. The life of a businessman or an investor for that matter, views the world differently. What the world perceives as the latest innovations, investors sees it as a life-long investment. And the importance of finding these chances and allocating one’s money correctly could not be stressed any more in Jeremy J. Siegel’s novel Stocks For the Long Run. Siegel who marks his grounds
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Both countries which endured a drop of at least 90 percent in equity value soared to levels that caught up and exceeded the US markets. During these flourishing stages those who committed on holding onto German and Japanese have enjoyed growth rates of at least 30 percent a year.

Just because Germany and Japan have manifested legendary growth does the author imply that an investor should invest in stocks outside of the United States of America? The answer to that question would be yes and no. Of course globalization has proven benefits the main being diversification of one’s portfolio. With the emerging markets of certain Asian countries, foreign investments offer higher returns with lower risk. Indeed such scheme sounds too good to be true; a twist is prevalent when it comes to going international. Too much of foreign equity boasts a high return rate at a dangerously high risk. While a strictly US portfolio results into a medium risk at low return. But once an investor diffuses these two together, he can live happily off a rate of return that can be given at low risk. Depending on whether one’s acceptance of risk, they can select themselves an efficient portfolio suited for them in figure 9-3 (134). Surely enough, Siegel has shown devotion towards well-paying investments, especially ones in the long-run but can he guarantee that these methods of investing are going to be successful?

Unless one possesses a crystal ball of some sort, it is impossible for

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