eating a certain way is related to various health outcomes. People who eat the healthiest tend to also abstain from smoking, drink moderately (or not all), exercise regularly and get an annual check-up. Those who eat the worst often subscribe to other unhealthy habits. And most of us are somewhere in the middle. That makes it tough to correlate increases or decreases in various diseases with particular diets.
However, some findings are so well confirmed that reasonably informed people simply don’t disagree on them anymore. For instance, we know that consuming high levels of sugar, salt, processed foods, tobacco and alcohol are ruinous to your health. By the same token, no one seriously doubts that the healthiest things you can eat are fruits, vegetables, legumes, nuts and seeds.
What does all this have to do with successful investing? Quite a bit, actually.
Just as there is more than one way to eat healthily so is there more than one way to invest successfully. The trick is to avoid the worst stuff – the sugar, salt and processed foods of investing – and take advantage of the unequivocally good stuff.
In short, you want your portfolio to get the nutrients it needs to last a long time. Why is this so important?
Because we live in a world of skimpy bond yields, rich stock valuations, vanishing corporate pensions, and a Social Security system that (for young people, at least) is fairly described as a ticking time bomb.
Americans are living longer than ever. And you don’t want your portfolio to kick the bucket before you do.
All you have to do is follow the five secrets to a healthy, long-lived portfolio. And, fortunately, that’s just what I’m going to discuss in my next column. Stay tuned…