LET ME TELL you the secret to investing.
There is no secret.
Sorry to break it to you, but there is no Holy Grail that guarantees overnight riches in the markets. There’s no confidential stock-picking
scheme that will give you all of the upside with none of the downside. If
there were an investment strategy that was guaranteed to work all the time it wouldn’t be a secret and everyone would do it.
It has to be this way because risk and reward are attached at the hip. If you want to earn a return on your capital, you must accept risk in some form. One of the few iron laws of investing is there is no free lunch.
The first decade of the 21st century caused many investors to question their previously held beliefs. The stock market had barely recovered from the bursting of the dot-com bubble, which saw the stock market get cut in half from 2000 to 2002, before plunging nearly 60% during the Great Financial Crisis from 2007 to 2009. After a glorious bull market in the
1980s and 1990s, the 2000s were a lost decade of no returns with extraordinary volatility to boot.
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