“Owning stocks is an asymmetrical bet.” –Jonathan Clements
I have been a long term follower of Clements. I have always found him to be direct and spot on. But, what the heck is he talking about here?Asymmetrical is the opposite of symmetrical. It means unequal or unbalanced. Find out why this is a good thing when investing in stocks in Clements recent article: Playing The Odds.
When investing long term in the global markets the asymmetrical bet has always been the winner.
I love his simple formula for being on the right side of this asymmetrical bet….Buy stocks. Diversify broadly. Wait patiently.