The Importance of Asset Allocation and Diversification
As we flip the calendar and enter 2024, many people create New Year’s Resolutions, largely designed to improve an aspect of their lives. Many of these goals are exercise, diet, or financial based. One area we always encourage people to review at the start of each year is their investment portfolio, the risk associated with […]
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 […]
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)?” […]
Behavioral Finance and Asset Allocation
Summary Points: We simply have to watch money flow to know how “average investors” behave. Investor emotions typically run opposite to sound decision making. Sound allocation planning can provide other positive impacts on your overall plan. An emotional investor is very likely to make poor decisions over his or her financial life. Various […]
Behavioral Finance and Asset Allocation
Summary Points: We simply have to watch money flow to know how “average investors” behave. Investor emotions typically run opposite to sound decision making. Sound allocation planning can provide other positive impacts on your overall plan. An emotional investor is very likely to make poor decisions over his or her financial life. Various […]
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)?” […]
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)?” […]
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 […]
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, […]
Behavioral Finance and Asset Allocation
Summary Points: An emotional investor is very likely to make poor decisions over his or her financial life. Various experts (DALBAR, American College, etc.) have done in-depth studies to measure exactly how investor returns have lagged overall market performance. Measuring this behavior over an extended period for an “average investor” has proven difficult. The exact […]
Managing a Household Allocation
One of our mantras in planning is to “Know What You Own.” Peter Lynch popularized this term during his management of a Fidelity mutual fund in the 1980’s, and we think it applies to more than just investments. Your home, your health insurance, your business, and yes, your investments each have features, risks, and opportunities […]
Managing a Household Allocation
One of our mantras in planning is to “Know What You Own.” Peter Lynch popularized this term during his management of a Fidelity mutual fund in the 1980’s, and we think it applies to more than just investments. Your home, your health insurance, your business, and yes, your investments each have features, risks, and opportunities […]
