金融英语论文.doc

The primary message for people who are interested to
invest in the stock market is that they should ignore market
timing and buy stocks for the long term. This strategy is
simple and yet effective because stocks give good returns
over a long period of time. This article will highlight
strategies on how to allocate their money which could prove
to be useful for investors between savings and stocks.
The most simple strategy is the Buy-&-Hold strategy. One
does not need to do anything no matter what happens after
the initial investment is made. For example, you have $100
and you then decide to keep $60 in savings and use the
remaining $40 to buy stocks. Whether the stock market goes
up or down, you do not use your savings to buy more stocks
or sell stocks to put money back into savings.
If you follow this strategy strictly, it gives you
downside protection because your wealth will not fall below
$60. At the same time, it still gives you unlimited upside
potential because of the $40 that you have invested in
stocks. Given that stocks in general will give you higher
returns than savings in the long run, this is why many fund
managers advise investors to put a significant portion of
their wealth in stocks and hold on to them.
monly mentioned strategy is the Constant Mix
strategy. In this case, you maintain a constant percentage
of your wealth in stocks