Social

Tag Archives | diversification

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 […]

Continue Reading

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 […]

Continue Reading

Risk of Comparing Portfolio Apples to US Stock Oranges

It may be entertaining to watch Donald Trump point his finger and curtly say, “You’re fired!” When a client says the same thing to me, it isn’t so funny. I’m especially not amused if a client fires me because their diversified portfolio is underperforming the US stock market and they abandon the strategy. The result […]

Continue Reading

When Diversification Fails

Whenever one kind of asset is going down, ideally you want something else in the portfolio to be going up, responding to different influences. Correlation coefficients are one of the most complicated areas of the asset management world, but the idea behind them is pretty simple–or, at least, most of us thought it was until […]

Continue Reading

Dare to be Boring: Invest, Don’t Speculate

Recently I heard from an insurance salesman who scolded me for never giving any investment advice except to put all your money into “The Wall Street Casino.” Over the past 23 years, I’ve penned scores of columns about the benefits of a diversified portfolio of asset classes (Wall Street being just one of them). Still, […]

Continue Reading