Tag Archive: diversification

Eggs, Baskets, and Diversification

Eggs Baskets and Diversification

Recently, correlations across virtually all assets have increased. This means that diversification benefits are far sparser than they were in previous years. ~ Abraham Bailin It’s almost Easter and many of us have thoughts of eggs and baskets running through our heads. Everyone’s looking forward to enjoying a little chocolate and some quality time with…

History Only Rhymes

history-rhymes

Poetry is nearer to vital truth than history. ~Plato In our recent discussions about the Couch Potato style of investing, I mentioned that this strategy relies on historical market returns. I pointed out that including a component that reflects valuations might improve the strategy. This is basically the Valuation Informed Indexing approach about which Rob…

Stock Allocation: All or None?

beach-roller-coaster

Just remember, there’s a right way and a wrong way to do everything and the wrong way is to keep trying to make everybody else do it the right way. ~ M*A*S*H, Colonel Potter Update: This article was included in the Carnival of Wealth #9 posted at Personal Dividends and in The Carnival of Financial…

No Respite in Diversification

Invest a few moments in thinking. It will pay good interest. ~ Author Unknown Update: This article appeared in the Canadian Personal Finance and Investing Carnival posted at Investing Thesis. Thanks! We’ve been talking about bubbles all week. So far, we’ve outlined 5 financial bubbles and 5 socioeconomic bubbles that could affect your money and…