Thread by @RamBhupatiraju

Learning Market history & correlations/lessons within is important for long-term success.

Nice article with historical perspective of US Mkts (from 1970s) & some long-term lessons. (Ignore the promotional parts by the author).

@saxena_puru @Gautam__Baid

markskousen.com/seven-golden-l…

LESSON #1: Government policy can greatly affect your investment portfolio, for good or ill.

LESSON #2: Bull markets climb a wall of worry.

LESSON #3: Don’t fight the Fed. Adjust your portfolio when money is tight, and again when money is easy.

LESSON #4: Gold is money and the best insurance against an inflationary future and bad government policy, but don’t go overboard buying gold. (Not for everyone, but the author mentions that it should be done only as insurance. I guess Bitcoin is the proxy for it these days).

LESSON #5: Don’t be tempted into blindly turning your hard-earned money over to a money manager, or any one mutual fund. Diversify. Investigate before you invest.

LESSON #6: Invest in good Co.'s for the long run & take advantage of bear markets to buy. Don’t panic. The key to investment success is time, not timing.

LESSON #7: Investing in quality income & growth stocks offers the safest way to make money in the stock mkt in the long run.

Some good pts.

- There is a natural tendency under free enterprise for companies to expand and pay more dividends. But there’s nothing automatic about it. In order for the markets to flourish, government policy must “do no harm.”

- Wall Street dislikes tight money, when the Fed takes away the punch bowl. But Wall Street hates inflation even more, so occasional tight money policies are worth the price, despite political opposition.

- Being an entrepreneur is not for everyone. If you are not suited for creating your own business, the next best thing is to invest in other successful businesses. And that’s done through the stock market. Invest in good businesses that can’t help but grow over time.

/END.