So, if we have no chance, what do we do?

Sometimes I make it sound as though people have no chance in the markets.  Indeed, it is hard, but money can be made in the markets.  One of the things that people need to be sure not to do is to simply ignore their investments and hope that they'll do what they want them to do.  Ignorance is not bliss.  In the words of William J. O'Niel (Founder of Investor's Business Daily), "Diversification is a hedge for ignorance."  So, diversification can help investors in that they are less likely to get completely taken out of the markets.

 

Really one thing that people need to do it to admit their love or hate for the markets and then play them based on their decision.  If the markets simply bore you, or you do not have much time, actively managing your money is probably not for you.  But, you should use your time to find a fund, or several funds, that you believe fit your style.  I've written about the T. Rowe Price Capital Appreciation and Vanguard Wellington funds before.  They're good investments - funds you can feel comfortable holding for long periods of time.  And in those funds, the managers will pay attention to the markets for you...so you don't have to. 

 

When I am a portfolio manager, I will be doing the same!