Have the Right Temperament for Investing

Warren Buffett, one of the world’s most successful investors, famously claimed that the most important quality for an investor is temperament, not intellect. To be successful, you need to stay calm and rational during the market’s boom and bust cycles and avoid falling victim to the market’s herd instincts.
Even during dull market days, it takes

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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

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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

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Diversification and Our Emotions

Diversification across asset classes can allow our asset allocation to protect us from more than volatility – it can protect us from our emotions.
Sometimes we are afraid of what the markets are doing or might do and, as a result, we want to pull our funds out of the market.
The best approach in uncertain times

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