Diversification

Vital Intelligence for Investment Success

If you read The Wall Street Journal or the Financial Times, you have likely heard about the “risk trade.” It’s a term journalists have...
Balanced Portfolio vs S&P 500

Which Portfolio Would You Rather Own?

Given a choice, most investors would rather own the portfolio represented by the blue line in my chart. But in reality, many own something...
SPDR GLD ETF

Back to Even and Then Some

Are you tired of the media’s nonstop market analysis yet? It’s distracting at best and harmful to your health at worst. With the Dow...

My #1 Diversification Tip

I often write about diversification and the benefits diversification offers to investors. Diversification is said to be the only free lunch in investing. It...
Correlation of Shanghai A Shares to ASX 200

Avoid Australian Equities?

The correlation between Australian stocks and Chinese stocks is near a record high. If you are bearish on China, you probably want to avoid...
Net Flows to Equity Funds Related to Global Stock Price Performance

90 Million Emotions Wreak Havoc

With the market in a correction and off 10% this quarter, emotions are running high. I want you to take a minute this weekend...

The Most Important Takeaway from the BP Oil Spill

The oil spill in the gulf is an economic and environmental catastrophe. BP made some serious missteps that have cost the company and gulf...

Simple Arithmetic Vital to Your Investment Success

My arithmetic of portfolio losses chart shows the return necessary to break even after incurring a loss. The horizontal axis shows the assumed portfolio...

Are Small Stocks Safer Than Large Stocks?

A recent study in Financial Analysts Journal (FAJ) found that a portfolio of small-capitalization stocks is no more risky than a portfolio of large-capitalization...

Commodities Investment

If you bought commodities solely for this reason, it’s time to re-evaluate your position.