Many of the basic rules of investing are counterintuitive. For example, rising interest rates may be good news for those shopping for certificates of deposit and other short-term savings vehicles, but they're generally bad for bond funds. And here's another zinger: The lazy investor is often more successful than the hard-working one.
If you're checking in on your portfolio holdings every day--or worse yet, throughout the day--you may be tempted to trade more than you need to. In turn, you may run up high tax and transaction costs, and you're also more likely to chase hot-performing stocks and funds in the hope that they'll continue to outperform. That can be a recipe for disaster.
Because it is possible to shoot yourself in the foot with overzealous trading, I'm a big prop
Midyear Portfolio Checkup in Five Steps
Many of the basic rules of investing are counterintuitive. For example, rising interest rates may be good news for those shopping for certificates of deposit and other short-term savings vehicles, but they're generally bad for bond funds. And here's another zinger: The lazy investor is often more successful than the hard-working one.
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Asia ETF Roundup (Market) – December 2020 and January 2021
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How US Sanctions Affect China Investors
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The Dramatic Evolution of Emerging Markets (Part 1)
What does the dynamic nature of these markets mean for portfolio construction?
-
TraHK U-Turns on U.S. Executive Order Backwash: Impact Analysis
Tracker Fund of Hong Kong stopped adding new investments in sanctioned companies but resumed afte...
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Asia ETF Roundup (Industry) – December 2020 and January 2021
HSI consultation on methodology enhancement; CSRC, SSE, SZSE issues guidelines on index funds
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Asia ETF Roundup (Market) – December 2020 and January 2021
Chinese stocks rallied in January; China GDP growth registered at 2.3% in 2020; STAR Market-liste...
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How US Sanctions Affect China Investors
VIDEO: Some 44 Chinese stocks have been put on a sanction list by the US. What does that mean for...
About Author
Christine Benz Christine Benz is Morningstar's director of personal finance and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances and the Morningstar Guide to Mutual Funds: 5-Star Strategies for Success. Follow Christine on Twitter: @christine_benz and on Facebook.
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