Diversification is the proverbial don’t put all your eggs in one basket. So within an asset class like bonds, a diversified investor owns treasury bonds, corporate bonds, high-yield bonds, and international bonds, benefiting from the fluctuations from year to year in returns.Read More
Diversification the proverbial not putting all your eggs in one basket and is the hallmark of portfolio construction and design.
With index investing, investors buy a basket of stocks or bonds. (Investors cannot directly invest in an index.) The most popular index is probably Standard & Poor’s 500 (S&P 500), which tracks the 500 largest companies on the NYSE or NASDAQ and is a staple in the menu of investment choices that many of you have in your 401(k)-plan.Read More
Because different countries have different currencies, overseas travel is usually more complicated than domestic travel. Likewise, overseas investing is more complex than domestic investing. However, just as foreign travel adds diversity to your travel experiences, so foreign assets add diversification to your portfolio.Read More
The U.S. stock market has come a long way from its Great Recession low. That low, at which the S&P 500 bottomed out at 666 on March 9, 2009, is what has been called “the Haines’ bottom,” named after legendary CNBC anchor Mark Haines.Read More
The last time consumer confidence got as high as it was this March was in December 2000, during the tail-end of the dot-com boom. Back then, though, it took only three months from that great reading for the U.S. to enter a recession.Read More
So why should anyone own gold when its connection to money is founded in part on folklore and a gold standard that no longer exists?Read More