- How This ‘Do Nothing Portfolio’ Can Beat the S&P 500
A hypothetical stock portfolio has taken hands-off investing to a whole new level. Jeffrey Ptak, a chartered financial analyst (CFA) for Morningstar, recently devised a passive investment portfolio that’s based on the composition of the S&P 500. But instead of… read more…
- Why Schwab Believes Short-Duration Stocks Belong in Your Portfolio
As the Federal Reserve has aggressively raised interest rates over the last year to fight inflation, shorter-duration bonds have offered higher yields than their longer-duration counterparts. Surprisingly, a similar dynamic has existed for equities, according to financial services giant, Schwab.… read more…
- Have Apple and Microsoft Made Portfolio Diversification Impossible?
While the volatility of a single stock can lead to big winnings if the company takes off, your portfolio can suffer just as easily if that firm has a bad day. Diversification can help you smooth out those lows. At… read more…
- These Stocks Fell at Least 38% Last Quarter. Are They in Your Portfolio?
The first quarter of 2023 was a mixed bag for many stocks. And five, in particular, were among the worst performers. According to Morningstar, First Republic Bank (FRC), Bed Bath & Beyond (BBBY), Groupon (GRPN), Lumen Technologies (LUMN) and Zions Bancorp… read more…
- Morningstar Says These Two Assets Can Protect Your Portfolio From Inflation
Let’s face it: the past few years have been pretty scary for investors. From the pandemic to the bear market and inflation, it seems like most people aren’t as concerned with making huge gains as they are with simply protecting… read more…
- Vanguard Says Don’t Give Up on the 60/40 Portfolio
Of all the choices an investor has to make, asset allocation could be the most important. Deciding how to split up the money you invest among different asset classes requires clarity of purpose and an understanding of each category’s advantages… read more…
- 5 Things to Invest in When a Recession Hits
When the market is soaring, it’s easy to forget that what goes up can also come down. But economic slowdowns tend to be cyclical, which means that another recession is in the future. Whether it’s fast-approaching or still a ways off, it’s… read more…
- Cigar Butt Investing: Warren Buffett Strategy
Cigar butt investing is a form of troubled-asset investment. In this strategy, you buy low-priced stock in struggling companies that should be worth more than their current share price. You let the stock bump up, then sell it for a… read more…
- What Are Multi-Asset Strategies?
Multi-asset strategies are styles of investment that provide for including a variety of different financial assets such as stocks, bonds and cash in a portfolio. Multi-asset strategies can provide greater diversification and less downside risk while also adding income and… read more…
- Money for Nothing: How to Build a ‘Couch Potato’ Portfolio
Want to grow wealth but don’t want to have to spend hours poring over your investment portfolio or investment decisions? If so, a lazy portfolio may be right for you. Lazy portfolios are designed to generate returns without requiring constant… read more…
- Fidelity Breaks Down 3 Reasons Your Portfolio Is Underperforming: Here Are the Solutions
It’s no secret that equities and bonds took a shellacking in 2022. The downdraft from the highest inflation in four decades, sharply rising interest rates and persistent supply chain disruptions combined to hammer the S&P 500 some 25% by midyear.… read more…
- How to Calculate the Beta of a Portfolio
Investors, whether beginner or seasoned professionals, all have a threshold for risk. Some prefer to play it safe and favor a low-risk investment plan while others are more advantageous with a “high risk, high return” mindset. No matter where you… read more…
- How and When to Rebalance Your Portfolio
Rebalancing an investment portfolio is the process of making sure the proportion of asset types in your portfolio reflects your goals. It builds on two tenets of investing, diversification and consistency. It’s a necessary process because various securities rise and fall… read more…
- Is the 60/40 Portfolio Dead? Long Live the 60/40 Portfolio
A 60/40 portfolio allocation is a popular investing approach. Put simply, it’s an allocation strategy that consists of 60% equities and 40% bonds. This approach, which may allow for robust growth while remaining relatively risk-averse, has shown long-term positive returns… read more…
- How to Build a Three-Fund Portfolio
If you want to uncomplicate investing, a three-fund portfolio approach can be a simple way to growth wealth over time. This strategy involves choosing three mutual funds or exchange-traded funds (ETFs) to create a diversified portfolio. The three-fund portfolio is… read more…
- Assets vs. Liabilities: Investment Strategy
Business firms use a financial analysis technique called asset vs. liability management (ALM) to mitigate risk due to a mismatch in their assets and liabilities. A mismatch occurs when assets and liabilities do not correspond to each other properly. A… read more…
- Try This Lucrative Investment Opportunity, But Make Sure You Make These Two Moves to Hedge Against Risk
Short-term bonds in 2022 offered better yields than longer-term bonds. That’s an exception to the historical pattern of longer-term bonds typically offering a higher interest rate than shorter-term bonds. Investors responded to this temporary role reversal by piling into one-,… read more…
- Four Things Vanguard Wants You To Know About Bond ETFs
In this bear market, investors are grasping at straws for stable securities that can deliver solid returns. Though investors do tend to gravitate toward bonds in times of volatility, Vanguard is highlighting the attractiveness of bond ETFs in particular. A financial… read more…
- What to Do When Your TIPS Post Negative Total Returns
Treasury Inflation-Protected Securities have had a rough year. Their price declines have far outpaced the upward principal adjustment they automatically get from inflation. Indeed, for the 12-month period through the end of September, these government securities have booked their worst… read more…
- Investing $200 a Month: How Much Will You Make?
Investing as little as $200 a month can, if you do it consistently and invest wisely, turn into more than $150,000 in as soon as 20 years. If you keep contributing the same amount for another 20 years while generating… read more…
- Investing $100 a Month: How Much Will You Make?
Investing $100 a month gives you the chance to make regular progress toward your financial goals. Sticking to a regular commitment can help you build wealth over time. If you are ready to invest $100 a month, your returns will… read more…
- Portfolio Variance: Investing Guide
Portfolio variance measures risk by assessing the dispersion of asset returns in a portfolio. Essentially, portfolio variance measures the spread of returns in a portfolio. A portfolio full of assets that have high correlations will have higher portfolio variance. If… read more…
- This Popular Portfolio Strategy Can Actually Make You Lose Money
Many long-term investors have championed the 60/40 portfolio, which holds 60% in stocks and 40% in bonds, as a classic investment strategy that can deliver risk-adjusted returns. But Morningstar says that persistent inflation and interest rate increases in 2022 have… read more…
- How Much Investing $500 Per Month Can Give You
Whether you’re investing $50 or $500 per month, it can be a great idea to regularly invest in the market if you’re looking for long-term growth for retirement. For most households, regular, fixed investments are one of the best ways… read more…
- How Many Stocks Should You Hold In a Portfolio?
For most household investors, your portfolio is generally a mix of three main asset classes: stocks, bonds and banking products. By banking products, we mean anything ranging from a savings account to a certificate of deposit that you hold with… read more…