Welcome to the August One's website. I'm glad you've arrived!
This site focuses on the financial aspects of life.
Disclaimer: This page expresses ideas about financial matters, but is not advertised
as advice. These ideas are purely my own humble beliefs and opinions. There is no commercial intent or content, and nothing is for sale here. I have a few links to commercial sites because I find them helpful. I have received no reimbursement from any of them.
The last major change was on
Tuesday, March 07, 2000
, when a ranked performance list of selected mutual funds was updated.
Ways to invest and to strive for higher returns
This link takes you to a discussion of using total return values to
apportion investment funds over several selected funds (or stocks).
While the net asset value of a mutual fund or other nonfixed
equity varies with market demand, the total volatility effect is dependent upon the prices at
purchase and sale. The greater the volatility, the more pronounced the price change in
response to market news or conditions. If one is committed to longer term investment in
respect to the market cycles, there is less concern and overreaction to short term events.
Some of these long-term cycles persist for several years. If there is a definite or specific
need for part of the investment to be withdrawn in two years, that part should be set
aside and not held in a volatile investment. Some common plans advocate a percentage
in fixed funds or bonds as a function of years, without regard to need. Focus upon the
time that the cash is needed instead. Don't sell during a temporary decline because
you didn't plan ahead.
Periodic constant dollar amount investing ensures that more shares are bought when
prices are low, and less shares are bought when prices are high. The average share price
is then lower than the average of the highest and lowest prices. This technique is easily
and automatically implemented with a periodic salary deposit plan. The inertia that often
paralyzes investors is overcome by the automatic plan.
Market Range Strategies
In general, market timing doesn't work well. A sudden
downturn can lead to a sellout followed by missing a fast rebound. Shares would then be
repurchased at a level higher than desired. Buy and hold strategies work well for those of
us who don't want to devote every waking moment to investment.