Cash investments are the final frontier in low cost investing. Banks and/or brokerages, acting as middlemen, have charged extremely high fees traditionally. Roughly speaking,their fees can be from 1% to 3%. This has not come under much public scrutiny. However, with some effort, investors can completely eliminate fees or lower fees considerably.
Our conservative portfolios continue to outperform, demonstrating it’s possible to derive reasonable returns without incurring much risk.
We compare returns of foreign stocks with US stocks. We also look at how global allocation funds have performed and draw some insight from this year’s experience.
Given the current investment environment, it’s pertinent to revisit the invest and speculate combined strategy. Looking ahead, we will certainly encounter a bear market or a deep correction one day. This strategy presents a sensible, pragmatic and intuitive way to deal with an unruly stock market.