AIP Money Management Tip
Over diversification is a serious mistake made by many investors. Some investors have learned the harmful effects of under diversification and mistakenly believe that the more diversification the better. It has become common to diversify to the point of hurting your investment returns. This is particularly harmful in the current environment where [...]
Entries Tagged as 'asset allocated portfolio'
Are Your Returns Suffering From Over Diversification?
February 22nd, 2010 · 1 Comment · AIP Money Management Tips, Portfolio Management
Tags: Arbor Investment Planner·asset allocated portfolio·Asset Allocation·company specific risk·industry risk·over diversification
Five Reasons to be Cautious Now
January 22nd, 2010 · 2 Comments · Economics, Investment Planning, Risk Management
1. The velocity of money circulating in the economy is very low. The growth we are experiencing right now is from massive government spending and expansion of the money supply. The Federal Reserve has kept short-term rates near zero and provided extremely loose monetary conditions. They have little left to help the economy if it [...]
Tags: Arbor Investment Planner·asset allocated portfolio·blue chip stocks·commercial real estate·credit expansion·diversified portfolio·dividend stocks·economy·expert stock picking·high unemployment·homeowner's equity·insider selling·loose monetary conditions·money supply·portfolio asset allocation·U.S. consumer·unemployment rate·velocity of money
Diversification – The Critical Element of Portfolio Management
August 8th, 2009 · 1 Comment · Investment Planning, Portfolio Management, Risk Management
By Ken Faulkenberry
Diversification is the single most important element of investment planning. Diversification is a portfolio strategy that reduces risk by combining different investments that are not correlated. The volatility (risk) of the portfolio is reduced because not all asset groups, industries, or stocks move together. The goal of diversification is to reduce risk.
Lack of [...]
Tags: active asset allocation strategy·asset allocated portfolio·Asset Allocation·asset groups·company specific risk·diversification·etf investing·etf portfolio·etfs·fund management risk·industry risk·Investment Planning·lack of diversification·market risk·model ETF portfolio·model investment portfolio·over diversification·Portfolio Management·portfolio strategies·reduce risk·risk
