The All-Season Investor

"Investing in more than one vehicle helps to cushion your portfolio in case one of your selections does not turn out to be as profitable as was originally expected."

"The allocation of assets in a number of different categories achieves diversification, but diversification alone does not necessarily guarantee investment success."

"Before an asset allocation decision can be made, we need to learn a little more about the scope and characteristics of the various instruments that make up a portfolio."

"Open-end funds are not publicly traded but are bought and sold through the fund companies directly or through a sales agent, such as a stock broker. Open-end funds are either load or no-load."

"International bond funds, specializing either in a global portfolio or that of a specific country, began to emerge in the mid-1980s and will undoubtedly grow in popularity in the current decade."

"The compounding factor of interest and dividends can be a significant ingredient in the long-term performance of a portfolio. For it to be really effective, compounding requires a great deal of time."

"Risk can be broken down into the following categories?security, market, opportunity, and emotion. "

"If we have a clear idea that the economy is in a recession, then it is normally safe to buy bonds. This is especially true if it has also been established that stocks and commodities are in a bear market."

"A starting point for ascertaining the prevailing stage of the business cycle is to arrange the three composite indicators published by the Commerce Department in chronological order."

"The six stages of the business cycle also have different characteristics that favor alternative asset allocation combinations."

"Identifying major trend reversals in financial markets is rarely as easy as most of the pundits would have us believe. However, there are a few rudimentary techniques used by technical analysts that can point in the right direction."

"When the Discount Rate is lowered after a series of hikes, it is usually a reliable signal that bond prices have already or may soon bottom out."

"Investments in the yellow metal make sense only when it is well below fair value."

"The amount of income that should be produced from a portfolio depends a great deal on the circumstances of the individual concerned."

"Gradualism is important from several aspects. First, sound investment decisions are always based on an assessment of probabilities. The odds of being right increase with more abundant evidence."