Title: What You Can't Learn About the Stock Market
Headings: What You Can't Learn About the Stock Market
What You Can't Learn About the Stock Market
Key Takeaways
Stock Market Theory
Skill or Luck?
Consider the Time Horizon
Portfolio Diversification
The Bottom Line

Content: Therefore, success with investing is a combination of knowledge, experience, and luck. The financial markets are in a constant state of flux. No matter how informed the investor, market uncertainty can never be eliminated completely. Consider the Time Horizon
Economists have long held opposing views. For example, neoclassicists believe in leaving the markets alone while Keynesians prefer to intervene in markets. There is no perfect approach to economic and financial issues that works every time. However, the longer the time horizon, the easier it is to apply the theory. Investing in the short term is more likely to be fraught with risk due to volatility than investing with a longer time horizon where the ups and downs average out. Portfolio Diversification
An overarching rule for the new investor is to diversify an investment portfolio. The portfolio should be rebalanced regularly, and it should not be subject to excessive fees imposed by a portfolio manager.