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More considerations
The previous chapter covered the basic investment principles when constructing and managing a portfolio. However, in addition, there are a number of investment nuances that investors would benefit from exploring. Some of them relate to general concepts whilst others focus on specific approaches which can have a material impact on portfolio returns. All will help to add to the total sum of understanding.
Be prepared to be a contrarian
When timing investment decisions for the long term, successful investing involves having the courage to act once sentiment and fundamentals are no longer in tandem. When market sentiment is running ahead of the asset’s fundamentals investors are pushing the price up beyond its true worth, ...
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