Tag Archives: Diversify
Opportunities in International Investing
More and more, we are finding it easier to justify our higher allocations to international equities. Roughly 55% of the investable equity universe, by market cap, is outside of the U.S. Also, world GDP has outpaced the U.S. GDP every year this decade; moreover, emerging markets have seen average GDP growth since 2000 of 5.9% [...]
Posted in Home Also tagged asset allocation, Asset Classes, International, Investments Comments closed
Bubbles…Is Gold next?
The WSJ recently published a chart that we thought was worth examining, and then noting here. The chart draws an excellent comparison between the recent surge in gold prices to previous bubbles of the last decade, giving us a cautionary perspective for those pouring money into gold today:
Forecasting: Interest Rates and Market Changes
The function of economic forecasting is to make astrology look respectable.
- John Kenneth Galbraith
I’ve been in the forecasting business for 50 years, and I’m no better than I ever was, and nobody else is either.
- Alan Greenspan
And the cost of reacting to forecasts, stock market promoters and other financial media commentators - leading to poor investor [...]
Two-Thirds Don’t Have a Financial Plan
Despite increasing pressure to slash debt and rebuild retirement funds, nearly two-thirds of consumers do not have a written financial plan, according to the 2009 National Consumer Survey on Personal Finance.
The survey, released today by the Certified Financial Planner Board of Standards, found that 64% of respondents do not have a written financial plan in [...]
Posted in Home Also tagged 529, asset allocation, College Savings, Educational Planning, Financial Goals, Investments, Investor Behavior, Retirement Planning Comments closed
We (Still) Believe in Modern Portfolio Theory
There has been a lot of talk about the demise of Modern Portfolio Theory. We still believe in Modern Portfolio Theory.
Modern portfolio theory is concerned with controlling risk (risk management) for the whole portfolio by allocation among asset classes that in themselves may be volatile (and correspondingly have higher returns), but whose returns are uncorrelated [...]
Modern Portfolio Theory
Modern portfolio theory suggests that a basic element in diversification of risk (with risk defined as the variation of actual returns around an expected return) is allocating the assets in an investment portfolio among categories of investments whose statistical performance correlations to each other are relatively low (or even with no correlation or negative correlation). [...]
Do hedge funds hedge?