The “Basics”?
How many people out there, feel they don’t understand the “basics” of investing? Even the word “basic” is elusive to most. By “basic” I mean do you understand some of the following concepts:
risk vs. reward
growth investments vs. income investments
definitions of terms like equity, bond, interest, dividend, mutual fund, index fund, exchange traded fund, etc.
diversification vs. correlation vs. asset allocation
My sense, is most have heard the terms, feel like they “should” understand the concepts, but really have a hard time relating to the concepts and/or putting them in the proper context. If you feel like this and our comfortable commenting, please respond with other investment or finance “basics” or “concepts” that you would like to better understand.
My goal is to develop an outline (with your feedback) that I can begin to walk beginning, intermediate and advanced investors through, so they are empowered with the investment knowledge they need to feel less confused and more confident about their financial decisions.