3 Diversification Errors
Portfolio diversification is an investment strategy designed to limit risk by spreading money across multiple asset classes and securities. Most financial literature along with your…
Portfolio diversification is an investment strategy designed to limit risk by spreading money across multiple asset classes and securities. Most financial literature along with your…
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…
If you asked a thousand different people about the key factors that should drive their investment choices, you’re bound to get a thousand different answers.…
In retrospect, Brexit turned out to be more meaningful than Grexit. And while the immediate reaction of global financial markets (NYSEARCA:VT) to the England’s decisive vote…
What’s more important? Making gains in the stock market or preventing losses? Before answering that question, let’s list a few common fallacies about risk: •…
In case you didn’t get the memo, global stocks are now in correction mode. And the velocity of the rout has been shocking to seasoned…
A few months ago the NASDAQ Composite Index (Nasdaq:ONEQ) eclipsed 5,000 for the first time since March 2000. Put another way, we are all 15…
From an observer’s viewpoint, the individual with a good sized investment portfolio (say above $1 million) doesn’t have much to worry about. They’ve got lots of money and…
People do the darndest things. For example, they put their investments in places where they don’t belong. This is a common problem suffered not just by retail investors, but…
Your investment portfolio is nothing more than a reflection of you. Put another way, it’s a personal statement about how you view risk, taxes, diversification,…
When measuring the investment performance of a portfolio, the biggest mistakes people make are 1) not tracking performance at all, or 2) comparing a portfolio’s…
Let’s examine the facts and fiction about portfolio diversification. Fiction: A 60/40 stock and bond portfolio (Nasdaq:VBMVX) is fully diversified. Fact: Only investment portfolios with…
What do investors love and what do they hate? Where are they putting their money? Analyzing the money inflow/outflow data for ETFs gives us some clues.…
The disdain for cash is nearly universal. Cash instruments like money market funds are yielding around 0%. And nobody needs or wants cash because stocks…
Investors should have 100% of their money invested in stocks! That’s what Laurence Fink, the chief executive officer at BlackRock declared in 2012. Since then, the…
Having a six or seven figure sized investment portfolio doesn’t automatically make it smart. Such is the case with a $725,000 investment portfolio that I…
“The investor’s chief problem—and even his worst enemy—is likely to be himself,” once quipped the great Benjamin Graham. The truth of Graham’s observation is seen in the…
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…
Will dividend yields test 1999 lows? That was the title of my post from a few weeks ago in which I explained to readers how…
Around 41% of all 401(k) savers have are using target-date mutual funds (TDFs) and the numbers keep rising. Experts in the financial services industry applaud…