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Tag Archives | diversification

Consider Source of Dire Economic Predictions

“Sell Everything!” That’s the advice to investors from RBS, a large investment bank based in Scotland, which issued the dire recommendation to its customers on January 8. The warning urged investors to sell everything except high-quality bonds, predicting the global economy was in for a “fairly cataclysmic year ahead….similar to 2008.” They said this is […]

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Be Wary of Investment Guarantees

The prospective client interviewing me was nervous and skeptical. She insisted on some type of guarantee that, if she hired my firm to manage her investments held for retirement, we would make her money. I asked her what she meant by “make her money.” She said that her balance would never go down. “No, I […]

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When Doing Nothing is Investment Strategy

A few weeks ago, when the US markets started dropping dramatically, a reporter for The Wall Street Journal called. He asked me if I had received any calls from worried clients. I told him I had heard from 5% of my clients. “What changes in their portfolios are you making?” he asked. “I’m not making […]

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Diversify with Global Investing

Around twelve years ago the South Dakota Investment Council combined two of their asset classes, domestic and international stocks, into one, global stocks. While this move didn’t make the nightly news, it did signify a growing trend. Many investment managers no longer view the US stock market as a separate asset class from the rest […]

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Diversification As An Investment Anti-Depressant

“We are in both a depressing and boring investment environment.” That not-so-cheery statement came from Cliff Asness, Ph.D., managing and founding principal of AQR Capital Management, LLC. Personally, I can handle “boring” investment environments just fine. Actually, when it comes to my investments I much prefer boring to exciting. I had all the investing excitement […]

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