The Intelligent Investor: 11 Years and Counting – WSJ.com

 

As I read this piece by Jason Zweig, I remember how often I seem to tell people I was an undergraduate, studying finance and economics in the late 1960s.  The Mustang was a new idea in cars and I owned Ford stock.  Zweig draws on similarities between the Dow crossing 1,000 then and now struggling with the 10,000 level.  He also discusses the differences and reasons we cannot assume this period will be like that one.  Finally, he restates some advice that has proved appropriate for any period of investing.        – J. David Lewis 

While it could be years before the Dow rises durably past 10000, no one will see it coming when it comes. So, just as I wouldn't advise anyone to be 100% in stocks, I wouldn't advise most people to have 0% either. And I think it is imperative to have a third to half of your stock money outside the U.S., where other markets—and currencies—may do better.

In November 1963, with the Dow at 740, the great investor Benjamin Graham declared that “in my nearly 50 years of experience in Wall Street, I've found that I know less and less about what the stock market is going to do but I know more and more about what investors ought to do.”

Graham went on to counsel that investors should —– Read the full column via The Intelligent Investor: 11 Years and Counting – WSJ.com.

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