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Beginner investors should insist on simplicity and stability over complexity and hard-to-understand momentum plays that are tough to value. Indeed, the time-tested blue chips may not enrich you over a near-term timespan (think just a few weeks or months), but they can help you build wealth over the years and decades while steering clear of potential risks that could set back your retirement portfolio by months or even years.
Indeed, if you can side-step truly devastating risks (think stocks that can shed more than 75% of their value in a hurry), new investors can likely do well over the long haul. Indeed, recessions are bound to happen on your multi-decade investment journey.
However, if you don’t chase momentum and stick with stocks that are cheaper than their true worth, the odds of irrecoverable plunges can be lowered. So, as a beginner, you should strive to achieve a relatively decent return over…
