When it comes to investing, these are important points:
• how much money do YOU have
• what is YOUR target return
• how much risk can YOU handle
• what is YOUR time horizon
How much money do you have?
Applies to your current lump sum (if any) as well as your savings rate & potential monthly contributions you could add consistently.
Also, how much can you afford to lose without impacting your lifestyle?
In other words, how much money are you targeting to make before retirement, or before age X.
There is an important difference between what you would WANT to make & what you NEED to make.
Wishing & dream versus realistic expectations.
You can define risk as whatever you want, I'm not going to get into the theory of it, but most people are not wired to handle massive volatility in the stock market as has been proven time after time.
(continued)
The recent favor of the month is following investors who are tilted towards growth names, but these stocks are extremely risky & volatile.
In other words they are NOT for everybody.
The Wall Street game has become all about measuring monthly & quarterly performance. Comparing annual returns against one another.
This is far too small of a timeframe to have any meaningful edge.
You ought to be looking & talking in decades.