Most of us here in America are average folks trying to build up some savings. We don’t have the time to learn how to “play” the market, and we don’t have the financial risk tolerance to weather being wrong. So, as prognostications of a bear market loom, what’s one to do? Paul Farrell offers some interesting advice on MarketWatch, focused around “lazy portfolios”:
Solution: It’s time you got serious about setting up some “Lazy
Portfolios.” Why now? Because they’re the only intelligent way to
invest for a passive investor: Simple well-diversified portfolios of
three to 11 no-load index funds. “Lazy Portfolios” are the best and
safest way to capture the bull on the way up and avoid the worst of the
bear on the way down.
Of course, “lazy portfolios” aren’t complete slam dunks, and you will have to do some legwork. You need to make sure that your 3 to 11 no load funds are diversified across sectors. Either the funds you have should represent different sectors, or different sectors should be represented in individual funds. In any case, do a little bit of homework and then put together an investment portfolio that should stand the test of time, doing well in a bull market, and beating the bear market.