January 28th, 2014 2:32 PM by Eric Fang
Last a few days, I said that I decided to get sp500 index SPY for the investment. The main reason is the easy of execution. You just need be disapplineand have your own schedule for the purchase.
And also, those companies in SP500 are the best companies in the USA, and you will not have to worryto much about them so you will have a peacefulmind for the investment, and even when the market is down. And I also don't have the tax issues for the trades.So I just buy and hold.
For the past a few years, I did find some of the financial news are "useless". In the beginning of2012, I started accumulating builder stocks, and bank stocks. I purchased KBH at 9.xx and then therewas an artcicle about this builder might be "bankrupcy"soon, and it went down to $5.xx. And then it went higher after that.
And last year, A purchased AA for around 8.4x, and somearticles saying that this stock will be "dead" becauseof the aluminum price and the competition from China.And the stock was kicked out SP500, and it was up for 30%+after that.
So I guess it is hard no to be influenced by the media.I hope I can be immune to the news, if I just trade theindex. It is not bad just to be a "fool".And today, there is another article of Apple beiinganother Microsoft. First, what's wrong Microsoft?For MSFT, with 20% return last year, plus the divident of 3% every year. It is good enough.