“An investment in knowledge pays the best interest.” – Benjamin Franklin
During Soviet era communism, citizen behavior was managed through a monopoly on information. It was the duty of the KGB to know all they could about information flow and to tightly control it. When Gorbachev became head of the Soviet Communist party, he recognized that [...]
Category Archives: Asset Allocation
5 Easy Ways To Learn About Investing
Monday, August 23, 2010
Where Portfolio Returns Really Come From
Wednesday, August 11, 2010
Here is a shocking fact: Asset allocation, the idea of spreading one’s money into different buckets or asset classes, accounts for 90% of a portfolio’s return over time. This leaves a paltry 10% of performance tied to security selection and market timing.
Think of how radical this fact actually is. When you turn on CNBC or tune [...]
How Did Your Portfolio Perform?– Understanding Risk and Diversification
Tuesday, August 3, 2010
In competitive pursuits, there are established and transparent measurement systems to
determine not just performance but how performance is achieved. In professional sports,
a variety of statistics are used to compare individual and team performance. Everyone
from team managers to owners to bookies use these common statistics. And because the statistics don’t like, there is little [...]
Lessons from BP — Look to ETFs for Portfolio Diversification and Market Efficiency
Monday, July 5, 2010
Americans today have various visceral feelings about British Petroleum (BP). Mostly, it conjures up pictures of oil-soaked creatures, executives sweating during their public flogging, government intervention, and ruined beaches. Aside from the tragedy, it reinforces two fundamental tenants of MarketRiders.
First, stock prices can be random, and it’s best to protect yourself. [...]
I Believe, But Help Me In My Unbelief — Dealing With Market Volatility
Sunday, July 4, 2010
A man having a religious crisis of faith initially spoke the famous words of this blogs subject line. He was acknowledging that with tough decisions, there is a continuum, not a simple yes or no answer. You can have conviction, but circumstances come along that challenge it’s depth.
Similarly with such market volatility [...]
A Litmus Test…Is Your Asset Allocation Right?
Friday, June 4, 2010
Like a volcano, markets go through phases: they do very little and then suddenly they spit fiery lava. With new problems being introduced each day, be it Greek debt or the survival of the Euro, the markets are trying to figure out what stuff is worth. Volatility is up. And the “forecasters” are out in droves [...]
