Keys to Becoming a Prudent Investor

As the equity markets rebound and more stable returns reappear, it is a good time to review and consider what it means to be a prudent investor.  If the past several years have taught us anything it’s that in times of unpredictable financial markets, rational and savvy investment decisions often get lost in the fear and panic of the moment.   Following these few key points could help you avoid making bad investment decisions in the future:

  • Understand Your Investments:  It’s safe to say that if you are putting your money into something you don’t understand, you are at risk.  This doesn’t mean you have to be an expert in what you are investing in, but you should at least be aware enough to fully recognize the opportunity and the risk. Be skeptical when appropriate but do so rationally and seek out information from those who may be more in the know than you. Read more