A handbook of sound investing principles

How to: Take the long view. Diversify your investments. Pace yourself with dividends. Remember why you invest in bonds. Position for opportunity. Stick to your plan.

The Markets Will Change

…but the principles don't.

Welcome to the world of investing. It's a dynamic environment filled with change and growth, profit and loss, challenge and opportunity. Just when you think the going is steady and stable, sudden and unexpected shifts can occur. That's why, for long-term investors, the primary goal isn't to make as much money as possible on a hot tip or even a cool investment trend. Instead, it's to create a portfolio of investments that can weather both the smooth and the sometimes unsettled conditions that come with the territory.

Federated has guided investors through more than 60 years of market and economic change. Our experience has taught us the importance of discipline, the value of establishing a clear focus on objectives and maintaining an appropriate balance between risk and reward.

No one can predict or control the market's next move. But there are time tested principles investors can rely on as they pursue their long-range goals through a variety of market conditions and their own changing circumstances. Consider this your guide to investing for the path ahead.

1.1 Time in the Market Is What Matters — Not Timing

Federated Securities Corp., Distributor