Lexington Times (May 2024)

Rethinking Diversification

In the investing world, diversification is a concept that has been ingrained in investors’ minds for generations. Sometimes hailed as the one “free lunch” in investing, it has become an oversimplified term for many investors, often meaning nothing more than “don’t put all your eggs in one basket”.

The First Step Towards Financial Clarity

The first step in the financial planning process is gathering all the information needed to make financial decisions. Because this can take valuable time, people are often tempted to jump straight to the decision. This usually leads to suboptimal financial choices, some of which may be irreversible.

The Stock Markets

(Updated May 2024)

The key benchmark you should care about is achieving all of your financial and life goals and not running out of money.

The Unimportant Numbers – 1 Month

Monthly figures are a distraction from your long-term goals, we’ll help you avoid the noise.

The Important Numbers – 30 Years

Investing in the Great Companies of the World has produced life-changing returns for the disciplined and patient investor.

Inflation – The Real Enemy (Updated May 2024)

The number one enemy of the long-term investor is the financial dragon called inflation (the silent but steady increase of prices over time).

The only sane definition of money is purchasing power, and over the last 30 years, inflation in the UK has almost halved the value of your money.

But an investment in the global share market has consistently provided protection from this enemy.

RATIONAL OPTIMISM

The media is not a friend of the disciplined and patient investor. Whether it’s on TV, Print or Online, the media prefers to focus on short-term returns, market predictions, and negative news. Which is not suitable for a long-term investor.

Below are the stories, podcasts, and images which we wanted to share with you this month, which are uplifting, interesting and informative.

These links below will take you to articles on other websites.

Positive News

Here is this month’s selection of positive news stories not related to investing.

Further Reading

Here are some articles you may find interesting this month.

Listen & Watch

  • ​​Realistic Personal Finance Hacks
    Realistic advice that challenges conventional wisdom.
  • ​The surprising science of happiness​
    Dan Gilbert, author of “Stumbling on Happiness,” challenges the idea that we’ll be miserable if we don’t get what we want. Our “psychological immune system” lets us feel truly happy even when things don’t go as planned.
  • Mastering Money with Financial Rules of Thumb
    The Finance Geeks are putting financial rules of thumb under the microscope. Exploring popular rules like the 50/30/20 Rule (50% Needs, 30% wants, 20% invest), the Rule of 72 (calculating investment doubling time), the 100-minus-your-age asset allocation strategy and the Pareto Principle (80/20 Rule), plus many more, revealing their strengths and limitations.


A Picture is worth 1000 Words