Quote:
Originally Posted by Bill Bumface
Don't you think it's pretty dangerous to advise new investors to go completely into one sector in one geography? Sure, they have been stable for decades, but that means nothing and seems risk as hell to me.
I think the most important party of risk management is to be geographically and sector diverse.
Canada represents such a small portion of the world markets, it is home bias to have the majority of your portfolio invested in Canadian companies.
We've seen banking blow up elsewhere. There are no guarantees that doesn't happen here.
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Possibly. But if you don't know what you're doing on the stock market, you're not investing anyways, you're gambling. I suggest learning on a bank stock because they're easy to understand.
I do understand a diverse portfolio though. But if you tell someone who doesn't know much about investing to stop buying mutual funds and start with a self directed diverse stock portfolio, that's major information overload and those people aren't going to be convinced to learn about stocks.
But I guess you're right Slava. What I consider to be just basic understanding for self preservation purposes isn't something of the majority of people' want to spend time on. Heck, I'd probably have a similar success rate telling people to learn the basics of how meat goes from animal to grocery store (ie: barely anyone).