The Importance of Asset Allocation and Diversification

Not only has recent market volatility resulted in renewed anxiety for many investors, it has also been a stern reminder of the value of having a proper mix of assets in your portfolio.  The concepts of asset allocation and diversification can be traced all the way back to a 4th century text, the Babylonian Talmud, which […]

Diworsification – Can You Take Diversification Too Far?

Key Takeaways: Conventional wisdom tells us that investing all our money into any one asset type carries an inordinate amount of risk, but is it possible to spread our investments over too many asset types?  The term diworsification was coined by Peter Lynch in his 1989 book, “One Up On Wall Street”. He used the […]

Asset Allocation Factors: Time and Emotion

When we meet with a new client, one of our tasks is to determine an appropriate asset allocation for the funds they invest.  At a very basic level, the question we are trying to answer is “what percentage of the investment portfolio will be comprised of equities (stocks), and what percentage will be fixed-income (bonds)?” […]