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 [...]
Category Archives: Portfolio Diversification
Where Portfolio Returns Really Come From
Wednesday, August 11, 2010
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. [...]
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 [...]
The big drop – did you yawn or did you freak?
Saturday, May 15, 2010
On May 6th of last week, the markets shocked the world with a never-seen-before event – a 1000-point drop in a mere sixteen short minutes. During those brief moments and the hours following, financial programs on TV and radio featured pundits whose heads were spinning while seeking to comprehend how 10% of the market’s value [...]
Resurrecting a Retirement Portfolio — Good Advice and A Warm Glass of Milk
Friday, March 12, 2010
Has your retirement portfolio – or lack there of- got you up at night? If so, consider reading an excellent round-up article by Jan Rosen of the New York Times ‘Now Is A Perfect Time to Reconstruct A Nest Egg‘ that provides an excellent primer on IRA investing. Even though many investors have been hit [...]
Behind Closed Doors – The Untold Story About Diversification
Monday, March 8, 2010
Have you ever been a part of one of those trusted conversations where you become privy to information that is so powerful it would disrupt the status quo?
Think of the conversations that occur behind closed doors at the White House, corporate boardrooms or U.S. Central Command. We all understand that there are elements of those [...]
