Click here to download yourself the pdf.Why You Should Diversify by Jeff Holland
Why You Should Diversify
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Tag Archives: investing
Surviving the Stock Market: Stay Ahead Of Your Emotions
{1:22 minutes to read} All stocks have to be owned by someone. Investors essentially have long-term ownership in the world’s businesses. Like any owners, they get paid last. But often, especially if they globally diversify their portfolio, they also get paid most. And, like any owners, they are often the first ones affected by revenue changes, which can be scary. Managing human emotions are the major driving force behind investor success.
Have You Rebalanced Your Portfolio Lately?
{2:30 minutes to read} Maintaining a healthy balance is important in many areas of life; you constantly monitor and make ongoing adjustments to your monthly finances, your health, etc. But did you know it’s just as important to maintain balance & consistency in your investment portfolio?
This adjustment is called “rebalancing.” Some people call it “pruning.” Just as you might prune a tree, you also need to prune off some of the returns of a high-performing fund, then plant some more seeds in the ones that have done less well over the last year.
Staying the Course: Recency Bias and International Diversification
{1:40 minutes to read} Recency bias—the tendency to make predictions about the future based on the recent past—is often used in investing. The problem with recency bias is that trends change all the time. Nothing is certain in investing.
Most investors want to be invested only in the “hot performers.” In the the 2000s, international markets were the hot performers. In more recent years, it’s been U.S. markets. Now, some people are questioning whether they should continue holding on to international securities.
2016: Ten Predictions to Count On
by Jim Parker, DFA
The New Year is a customary time to speculate. In a digital age, when past forecasts are available online, market and media professionals find it harder to hide their blushes when their financial predictions go awry. But there are ways around that.
The ignominy that goes with making bold forecasts was highlighted in a recent newspaper article, which listed many bad calls US economists had made about 2015. These included getting the timing of the Federal Reserve’s interest rate increase wrong, incorrectly calling for a rise in long-term bond yields, and assuming an end to the commodity rout.1