How Does Diversification Actually Work?

Diversification is a good thing. Nearly everyone agrees that it’s just about the only free lunch in finance.
But not many people stop and think about how diversification actually helps them, beyond the general “don’t put all your eggs in one basket” argument.
Should You Keep International Stocks in Your Portfolio?

There will always be some asset class that does poorly. Over the last few years, one of those asset classes has been international stocks. They have underperformed US stocks each of the previous three years, and it’s looking like they’ll do it again this year. Given this underperformance, we’ve had some people ask why we […]
Should Your Portfolio Include Commodities?

When it comes to investing, a whole bunch of magical investment solutions seem to be floating around out there, but should you really do anything differently?
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, […]