Global Real Estate

Don’t Let Home-Bias Investing Trip You Up

The total U.S. stock market has gained over 20% during the past year and is doing great. But for U.S. investors that are under-weighted to foreign stocks, it’s not so great. Why? Because foreign stocks have convincingly outperformed U.S. equities, thereby causing a performance deficit. What’s the problem? The tendency of investors to concentrate and …

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5 Building Blocks for Your Investment Portfolio

The difference between well-built and poorly designed buildings can be strikingly drastic. Take for example, I.M. Pei, the Chinese-American architect, who is a legend in his profession and has won many prestigious awards, including the Pritzker Prize. Among all the illustrious structures he’s designed, the Rock and Roll Hall of Fame in Cleveland, OH is the …

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3 Lies about ETFs

As U.S. stocks register new highs and bond yields register new lows, the exchange-traded fund (ETF) marketplace keeps humming along. This is true of ETFs in virtually all asset classes, including not just equities (NYSEARCA:SCHB), but currencies (NYSEARCA:FXE), commodities (NYSEARCA:DBC), and real estate (NYSEARCA:ICF). The total assets in U.S. listed ETFs and ETPs reached a record $2.25 …

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2 Times When Diversification Becomes Di-Worsification

Diversifying your investment portfolio: It’s a dull exercise that people repeatedly hear, yet a chore they execute with consistent imprecision. Are there times when diversification can actually become “Di-Worsification”? Variety is the Secret Diversification boils down to spreading your investment risk across multiple asset classes. It works because of something called “covariance,” which basically means …

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Fearful Lady

Building Your Investment Portfolio Shouldn’t Be Scary

How frightened to invest are people? So frightened, they’d rather die! A poll taken by Harris Interactive for Nationwide Financial found that 62% of surveyed respondents are afraid of investing in the stock market while just 58% are afraid of dying. Building your own investment portfolio from scratch is a fearful task for many people, …

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A Portfolio Strategy Warren Buffett Would Approve

What are the attributes of a world-class investment portfolio that even Warren Buffett would bless? Buffett’s 2013 letter to Berkshire Hathaway shareholders gives us a clue: “The ‘know-nothing’ investor who both diversifies and keeps his costs minimal is virtually certain to get satisfactory results. Indeed, the unsophisticated investor who is realistic about his shortcomings is …

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