Rebalance to Reduce Your Portfolio Risk

Having an allocation of stocks, bonds, and short-term investments appropriate for your goals and tolerance for risk is important, especially when the market is volatile and you may be tempted to make short-term moves.
Although unnerving at the time, history has shown that some of the worst short-term losses in the stock market were often followed

Continue reading Rebalance to Reduce Your Portfolio Risk

Investing in Riskier Asset Classes Using Risk Budgeting

For most individual investors it pays to have a long-term perspective and not worry about volatility. You can focus on long-term goals and the current environment by using a ”risk budgeting” approach to investing. It isn’t the same as market timing and it keeps the long term in mind. It shares its philosophy with Warren Buffett, who advised us to

Continue reading Investing in Riskier Asset Classes Using the “Risk Budgeting” Approach

Emerging Market Equities – BRICs and Other Considerations

Every portfolio should contain exposure to international equities to take advantage of growth and currency opportunities.
As investors go international, they should look beyond the usual emerging markets.
Here, Forbes contributor Alexandra Zendrian advises us on how we should approach the use of emerging market equities within your international equities asset class:
“Emerging markets” has become an unfortunate

Continue reading Emerging Market Equities – BRICs and Other Considerations

Gold As An Inflation Hedge

Is gold the best investment for protection against inflation.
Here’s an excerpt from an insightful post by Bloomberg columnist Matthew Lynn.
Dec. 8 (Bloomberg) — Economic chaos? The dollar crumbling? Central banks printing money like crazy?
Gold ingots
In reality, while investors are right to be nervous about inflation, maybe they are catching on that it’s wrong to

Continue reading Gold As An Inflation Hedge