This chart shows how the make-up of the world’s largest companies has changed since 1999 over five-year intervals and it gives an indication what the market was “thinking” at these specific points.
People are living longer so there is a great concern about outliving your savings. What can you do about this? Strategic asset allocation throughout your life can help ensure that you will not run out of money. Essentially your portfolio should be more heavily weight to equities when you are younger and then this exposure is reduced as you grow older. This infographic explains more.
Market corrections are hard to stomach for most investors. After watching the markets solidly rise for a period of time, seeing a sudden decline can be very unnerving.
However, these fluctuations are very common. A market correction is defined as a short-term duration market move between -10% and -20%.
Here is what you can expect to happen during a market correction.
Look at how much the the Fortune Global 100 list of companies has changed in just 10 years. This highlights why I think individual stock picking is dangerous for most people.
The top 100 is always changing, there are always companies growing and shrinking and trying to predict this is very difficult. This is exactly why you need to buy 1000s of companies not 10's, and you need to buy small and medium companies not just the 100 biggest.