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Entries Tagged as 'Asset Allocation'

Are Your Returns Suffering From Over Diversification?

February 22nd, 2010 · 1 Comment · AIP Money Management Tips, Portfolio Management

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 [...]

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Why and How to Add Brazil to Your Portfolio

February 8th, 2010 · 1 Comment · Portfolio Management, Specific Investment Ideas

By Ken Faulkenberry
Brazil has the tenth largest economy in the world and the fifth largest as measured by land mass. With a population of 193 million and a 2 trillion dollar economy, it is a political and economic leader in Latin America.  However, social and economic problems have kept it from being an effective global [...]

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Five Essential Themes for Your Portfolio in 2010

January 1st, 2010 · No Comments · Investment Planning, Portfolio Management, Specific Investment Ideas

By Ken Faulkenberry
Here are five themes with strategic advantages driven by supply and demand.  Each of these themes has the potential to provide a superior return on investment that transforms your portfolio from average to extraordinary:
 
ENERGY – Whether we are talking about oil, natural gas, coal, nuclear energy, or new green energy, we will probably [...]

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Portfolio Rebalancing: A Powerful Risk-Control Strategy

December 27th, 2009 · 1 Comment · Portfolio Management, Risk Management

By Ken Faulkenberry
Rebalancing is one if the most under utilized and under appreciated aspects of investing. An active asset allocation strategy, which requires frequent rebalancing based on current opportunities and risk, is the most successful strategy in today’s investment environment.
 
The purpose of diversification is to reduce risk by holding investments that will behave differently at [...]

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Economic Update – The Challenges We Face

December 7th, 2009 · 1 Comment · Economics, Investment Planning, Portfolio Management, Risk Management

By Ken Faulkenberry
The economy is going through profound changes trying to absorb the shock of two bubbles in one decade.  We are currently facing high unemployment, large and growing deficits, and a ballooning national debt. Instead of implementing sound fiscal and monetary policies, government policies of the past decade have and are compounding our long [...]

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Is Buy And Hold A Viable Strategy?

November 14th, 2009 · 2 Comments · Investment Planning, Portfolio Management, Risk Management

By Ken Faulkenberry
The purpose of asset allocation is to reduce volatility of the overall portfolio by holding different asset classes that are not correlated. Holding multiple uncorrelated assets means assets will be performing differently by rising and falling at different times. This helps smooth out returns; reducing volatility (risk) of the total portfolio.
 
A buy and [...]

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Five Most Important Factors Affecting Your Portfolio Value

November 11th, 2009 · No Comments · Investment Planning

 
1.     Number of years your money has to compound – Compounding is THE most powerful investment principal.  Start your investment program early!  Starting at age 25, a $300 monthly investment earning 8.0% will build a 1 million dollar retirement portfolio at age 65.  Starting at 45, will require a $1700 monthly investment for the same [...]

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