We Got a Bottom, Now What?

You can use the "explore" part to try stock picking, market timing, etc. to see if you can beat the averages. If you do, that portion of your portfolio grows faster and you get to critical mass faster. If you don't beat the averages "exploring," the smaller portion allocated to personal active management doesn't significantly impact your overall goal of reaching critical mass.

I recommend you build a core portfolio from one of the portfolios discussed in The Lazy Person's Guide to Investing, or pick one of the core portfolios I recommend in my newsletter. The main goal of my newsletter is to help you manage the explore part of your "core and explore" portfolio.

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Kirk's Recommended Books

• Stock Trader's Almanac 2004 by Yale Hirsch, Jeffrey A. Hirsch
• Technical Analysis of Stock Trendsby Robert D. Edwards, John F. Magee
• The Intelligent Asset Allocator How to Build Your Portfolio to Maximize Returns and Minimize Risk by William J. Bernstein
• Dictionary of Finance and Investment Terms Barrons Educational Series;

DISCLAIMER: Answers & my words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but Kirk. Individuals should consult with their own advisors for specific investment advice.