Posts tagged 'Diversification'


Here's Why You Might Unknowingly Be Putting All of Your Investing Eggs in the Same Basket

In November 2008, the scene unfolding in Peter and Olivia's living room was playing out across the country. 

Peter had just gotten home from a long day of the work, and was less than pleased to find the entrance to the house that he shared...


Diversification: Still the Only Free Lunch in All of Finance

It is said that there is no such thing as a free lunch in life, and for my part I think that is mostly true. Most of the supposedly free meals that I have consumed have had some side effects that I would have preferred to avoid.

The one exception in the investing world is diversification. Owning a diversified portfolio truly is a free lunch.

This article will discuss why diversification is such an important concept to understand in investing, and how it can temporarily eliminate the usual tradeoff between returns and risk.

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The Market Will Inevitably Fall Off a Cliff Again Sometime - Here's How To Make Sure Your Bungee Cord is Fastened

Anyone with money invested in the stock market has to be prepared to suffer a sudden loss of capital, like "Black Monday" when stock markets fell over 20% in one single day. Some smart risk management techniques can reduce your risk of getting hit by what has been called a "black swan" event.