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Wednesday, August 27, 2008

6 Golden Rules of Investment

This is a continuation of Part 1 posted on Aug 24, 2008 on What does “Thomas the Coach” Think?

As Thomas spoke like a machine gun, I did not managed to capture all the points. Then yesterday I checked his website and managed to get the answers.

So below are the 6 Golden Rules of Investment:

  1. Consistency vs Volatility (he refers to consistency of returns)
  2. Focus vs Diversification
  3. Capital Preservation
  4. Asset Allocation
  5. Value averaging vs Dollar cost Averaging
  6. Stay invested despite market shock (but in the right markets).
He also said Rules can change over time but Fundamentals do not. I noticed he changed Rules #2 and #5 as compared to what was posted on his website dated March 2008.

What are the 5 Fundamentals of Investment? (these were posted in Part 1 but with a different Heading)
  1. Global Liquidity
  2. Interest Rate Trend
  3. Leading Economic Indicators
  4. Market Valuation
  5. Risk Premium

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