Listen below to hear the latest More Than Money podcast as we have look into Stock Picking and how it will affect your financial future. Is it a good decision for your portfolio-building strategy?
Get a Full Summary of The Podcast Explaining Stock Picking and It's Risks
In the midst of all of our nation's craziness we've witness over the past few weeks, what can you invest in to really win? There has to be an opportunity for big profits, right?
That was the question I got from Bill.
Bill is looking for the right stock, sector, the hot thing that is going to do well.
This is called stock picking.
Stock Picking is trying to conclude which particular stocks will make for a good future investment based on current pricing and situation. Relying on accurate forecasting and making strong predictions, it's not a science as much as it is guesswork.
Why Bill Shouldn't Stock Pick
But, Bill is approaching retirement and can't afford to lose 40% if the market drops. I understand wanting to win big, but how much can he afford to lose at this time in his life?
If you're closing into retirement and don't know how much you would lose when the market drops, that's a problem.
Is It Time for an MRI of Your Investments?
There is a tool to get a realistic understanding of how a market drop will affect your true financial portfolio. Using extensive data from years past and looking how the market reacts, we can predict what your money will do during a crash and the degree of your exposure.
You can't sacrifice your long-term goals for short-term excitement in stock picking.
It's impossible to rely on market timing or stock picking because no one can predict the market accurately.
You have to build a portfolio that responds to uncertainty. If you don't know how to do that, I can look at your situation and over lunch give you honest advice for how to move towards confidence and no longer worry about the market.