Don’t Be Intimidated By Jargon
When making investment decisions, don’t worry if you can’t understand the jargon experts use right away. Don’t hesitate to ask questions. Jargon can be a bit intimidating, but here are some tips to give you a better understanding of the often used jargon:
Don’t put all your eggs in one basket – Consider including several different types of investments in your portfolio. In a diversified portfolio, if some are losing value during a particular period, others may be gaining value at the same time.
Let your money ride – Understand the power of compounding on your investment returns. When you reinvest your investment returns, you begin to earn a “return on the returns.”
Bear Market – This is a market that is falling. A bear market has a downward trend, and someone who believes the market is headed for a drop is often referred to as a “bear.”
Bull Market – This is a market that is trending higher, likely to gain. Someone who believes the market is going to go up is considered a “bull.” Additionally, the term, like bear, can be applied to how someone feels about an individual investment. If you are “bullish” on a specific company, it means you think the stock price will rise.
Call our team at TFCU Financial Advisors for help with your investment portfolio or to schedule a no cost, no obligation appointment.
TFCU Financial Advisors
6501 Tinker Diagonal
Midwest City, OK 73110