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Monthly Archives: December 2009


If You Are An Index Investor, Where Does Explore Investing Fit In?

In this week’s Forbes column, Rick Ferri asserts that “partial indexing works for Wall Street, not investors”. In this penetrating article, Rick ruthlessly uncovers Wall Street’s agenda is selling indexing for efficient markets while directing clients towards highly priced actively managed mutual funds for “inefficient markets”. As Ferry states, “Welcome to ‘Core and Explore’, also [...]

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Things to Consider: Risk and Diversification Among Other Things

Beginners and seasoned investors alike need to take into consideration risk and diversification in one’s investment portfolio to sleep soundly at night.  If anything, this past year should also have everyone evaluating one’s investment advisor as well as the risk & reward of an investment as this month marks the one-year anniversary of the arrest of Bernie [...]

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Hire an Investment Advisor or Go It Alone?

After reading Rick Ferri’s recent Forbes article ‘Who Cares What The Dow Did Last Week?’ one may question the validity of hiring an investment advisor. With the numerous financial tools available to consumers today, individuals should feel more confident defining and implementing their investing strategy themselves by following his guidelines: –Settle on an allocation between [...]

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Diversification Found with Multiple Asset Classes

Of the ’7 mistakes fund investors make most’ revealed in Chuck Jaffe’s recent article in MoneyWatch, focusing too much on a fund, and not enough on the portfolio, brings to light the importance of differing asset classes in one’s portfolio. “Finding good funds isn’t that hard; putting them together in an effective, low-maintenance, diversified portfolio is a lot more [...]

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Index Funds: Part of a Winning Investment Strategy

In Fortune Magazine’s just released 2010 Investor’s Guide, investing in index funds is seen to be a winning strategy.  One can build a portfolio with broad based index funds or invest in more specialized funds offered by a myriad of companies.  Either way, “stock picking, whether you do it yourself or pay a pro to do it [...]

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Retirement Plans: Some Advice from CNN Money

I saw a great post about retirement plans in CNN Money the other day by Walter Updegrave who is Money Magazine’s senior editor.  He makes alot of suggestions about investing and retirement planning and I wanted to share them with you.  He has 3 suggestions: 1. Take the saving decision out of your hands. People [...]

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Asset Class Description: Emerging Market Stocks

Stocks in companies in the 30 or so “emerging” markets are dominated by Asia (predominantly Taiwan and Korea) at over 50%, Latin America (20%), Africa and the Middle East (20%) and some smaller European countries are, collectively, considered an asset class.   An investment in emerging markets as part of your asset allocation strategy, is important [...]

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Asset Allocation 101 According to David Swensen of Yale

In David Swensen’s “Unconventional  Success” he covers asset allocation 101 touching on the topic of diversification and the importance of rebalancing, especially for beginners. The following paraphrases from David Swensen’s “Unconventional Success,”  There are core and non-core asset classes.  Core asset classes have 3 critical characteristics: 1) they give basic, valuable differentiable characteristics to an [...]

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Asset Class Description: US Treasury Bonds

Perhaps the most core asset class any investor needs for diversification in an ETF portfolio are US Treasury Bonds. Owners of treasuries have an investment in a portion of the public debt of the United States of America — backed by its full faith and credit.  There is no risk of not getting repaid your [...]

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