Bill Schultheis, a Smith Barney broker for thirteen years, quit and wrote a bestseller, "The Coffeehouse Investor," for people who wanted solid returns "without spending one ounce of energy" playing the market.
... he put 40% in bonds, creating a well-diversified portfolio. His "Coffeehouse philosophy" is so simple, just three principles:
1) Build a well-diversified portfolio,
2) own the entire market with low-cost, no-load index funds, and
3) develop a long-term financial plan and save regularly.
1) Build a well-diversified portfolio,
2) own the entire market with low-cost, no-load index funds, and
3) develop a long-term financial plan and save regularly.
Really a good way to go for the average person. The percentage of bonds (or CDs/cash) would be less for younger folks (age 20-35), perhaps more for those closer to retirement. Personally, I'd suggest adding in a small percentage (3%) in hard assets such as gold and/or silver.
Meanwhile the market is moving, sometimes hard and fast. Big boys (and girls) are causing the wild swings, and the little guy (or gal) is often best off waiting until the dust settles. Those that are extremely nimble can profit on this intra-day swings, however, as readers know, intra-day timing is not my strong suit. To quote Clint Eastwood: "A man has to know his limitations."
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