You’ve heard the sage advice “Don’t put all your eggs in one basket.” That’s diversification. The S&P 500 is an index based on the market capitalizations of 500 large companies …
Investing Blog
Financial Concept: Diversification
Financial Concept: Inflation
Another important factor to consider in the context of your investments is the role of inflation. In June 1975, when Steve Jobs and Steve Wozniak invented the Apple computer, actual …
Financial Concept: Opportunity Cost
Opportunity Cost is a calculation of gain forgone when funds are used for alternate purposes. For example, the “opportunity cost” of attending business school is not only the expense of …
How to Look at Performance Gains and Losses
When the market value of investments declines, it’s natural to fear of falling short of your goals. Understanding Loss, Relative Loss, and Relative Gains can help alleviate such fears. ● …
Choose Your Investment Advisor as Carefully as You Choose Your Doctor
If you want a mechanic to be able to fix what’s wrong with your car, you must let him know about any peculiar sounds you hear (even if it requires …
Financial Concept: Risk vs. Return
No discussion of investments can take place without an understanding of the fundamental concept of Risk. Investments that are high risk can provide a high reward . . . or …
Dispelling Investment Myths: Playing it Safe
The Myth: We can accumulate enough for retirement by saving cash and buying cash equivalents. The Truth: Inflation robs cash, CDs and T-Bills of their purchasing power. In 2014, a …
Dispelling Investment Myths: Superior Performance Justifies Higher Fees
The Myth: High costs are offset by superior performance. The Truth: A lot of buying and selling happens in the mutual fund investment process, incurring hidden costs that reduce your …
Dispelling Investment Myths: Chasing Last Year’s Winners
The Myth: Working with funds or financial managers that did well in the past is a good method of indicating which funds or managers will do well in the future. …
Financial Concept: Efficient Markets
The Efficient Market Hypothesis states that it is impossible for anyone (without inside information) to predict outcomes in the market, because share prices always reflect all known information. Although analysts …