GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’ve got the option to read more about oureditorial guidelinesand our products and servicesreview methodology.
Paying too much for a stock, even a great one, can drag down long-term returns.
Even strong companies can underperform for years, Stroup pointed out.
Balance blue-chip stocks with a mix of high-growth, income-generating and alternative investments, Stroup said.
Weve seen the popularity of diversifying away from over reliance on stocks with the recent growth of gold.
Because gold is historically negatively correlated with the stock market, it usually rises when the stock market falls.
Dividend Power: Reliable Income or Overhyped?
Unfortunately, not all dividends are created equal, Stroup pointed out.
Companies with unsustainable payouts can cut them, erasing investor confidence and stock value, he explained.
Even seemingly unshakable companies like GE and Kodak fell behind.
Relying too much on todays market leaders can be risky.
A forward-looking portfolio considers emerging trends, industry shifts and a mix of defensive and high-growth assets.
Emotional Investing: A Dangerous Trap
Brand loyalty can cloud your judgment.
Simply because you love using a companys products doesnt mean its stock is a good investment.
Many overpay for household names instead of objectively evaluating fundamentals.
Name recognition alone isnt a retirement strategy.
More From GOBankingRates
Share This Article:
