A Diversified Portfolio is a Healthy Portfolio
Diversification is one of your most important financial tools. This one strategy can simultaneously limit your exposure to investment risks while also potentially improving expected returns. Best of all, the benefits of diversification are well-documented and supported by over 60 years of academic research. The Benefits of Global Diversification Diversification simply means spreading risks around […]
How Do Presidential Elections Affect The Markets?
With the presidential election coming up, people are naturally curious about what the elections mean for the stock market – and, more importantly, for their investments (and everything those investments represent).
A World of Opportunities: The Benefits of Global Diversification
It’s obvious why a U.S.‑based investor may think it’s better to stay away from international investing, but you don’t get the full story by just looking at the short-term returns of different asset classes in isolation. You need to take a long-term perspective and think about how everything affects your total portfolio.
Are Oil Prices Lower Because of the Stock Market?
Is the volatility of oil a result of the volatility of the markets? Or vice versa? Or neither?
How Should an Overvalued Market Affect Your Investment Plan?
Markets don’t move capriciously. They move because something new has happened – new information has arisen. The tricky part is that we don’t know what new information will arise.
What Happens After the Market Drops?
Staying disciplined and avoiding market timing are two of the best investing tips we could give whether the market is up or down, but what happens after the market drops?
Disciplined Investors Don’t Rely on Market Predictions
Authors Note: This article was originally published towards the end of January 2016. To put it mildly, the year got off to a rocky start, and a lot of people were incredibly nervous about what this meant for the markets. While this article specifically addressed the situation at the beginning of 2016, but with a […]
A Vanishing Value Premium?
Value stocks underperformed growth stocks by a material margin in the US last year. However, the magnitude and duration of the recent negative value premium are not unprecedented.
Can You Time the Market?
Over the long term, market returns need to be captured efficiently and consistently. Trying to guess when they occur is an impossibility that leads to the underperformance stated above. How difficult is it to time the market? Let’s look.
Prophets & Losses: Predicting the Market is a Losing Proposition
Right now there is a lot of noise in the system. The din of the pundits quickly becomes deafening as they try to tell you what the markets are going to do this year. The financial media does this every year, and even more so with this year’s volatile start. This type of prognostication sells, […]
