I have frequently emphasized the importance of a diversified portfolio and of having a significant portion of common stocks in your portfolio, even in retirement. Although I have been retired for 18 years, I still maintain about half of my portfolio in some form of common stocks -- either the shares themselves or mutual funds or exchange-traded funds (ETFs).
In a prior column, I recommended "Stocks for the Long Run" by Jeremy Siegel (McGraw-Hill) for investors who wanted to invest in common stocks. Siegel is a professor of finance at the Wharton School of the University of Pennsylvania. He has revised and updated the book now in its 5th edition. I have reviewed the latest edition, and I believe it contains valuable information for investors who expect to continue to invest in the stock market.
In this edition, Siegel analyzes the economies of China and India, and provides information that will provide guidance for investing in these economies. He devotes a lot of attention to global markets, discussing the nature and size of these markets and sharing his long-term projections. He also emphasizes the importance of including global investments in your portfolio.
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