6 Ways to Manage Concentrated Stock Positions
What is a concentrated stock position? If one stock makes up more than 10% of your overall asset allocation, it’s probably too much. A diversified
Category: Managing Risk
Risk management is a key component of any investment strategy. It helps investors protect their assets by aiming to reduce market risk though diversification, allocation between stocks and bonds, and other financial planning measures. By managing risks effectively, investors can help protect their portfolio against diversifiable risks and increase the likelihood of achieving long-term goals.
The risk of loss is inherent in investing: market volatility, changes in economic conditions, and geopolitical events are always there. It’s not possible to protect against all types of investment risk, but proper risk management seeks to mitigate risks than can be managed, such as company-specific risk.
Diversification of investments across different asset classes, sectors, and geographies, portfolio rebalancing, and an ongoing discussion about investment risk profile are some ways we seek to minimize investment risk.
Stocks vs. Bonds: Historical Returns, Risk, and the Case for Both
Stocks and bonds differ in many aspects, including the risk and return investors can expect. Because of these differences, stocks and bonds accomplish different things
Are Bonds Safe During a Recession or Market Crash?
Although past performance is not indicative of future results, history can be a helpful lens to view bond performance during past recessions and bouts of
Stress Test Your Retirement Income Plan
Don’t stress out about every headline, stress test your retirement plan instead. Markets move every day and the news cycle is 24-7. Unfortunately, headlines often leave
Bond Basics: How Bonds Work and the Benefits of Investing in Bonds
How do bonds work and why buy them in your investment accounts? There are several benefits of investing in bonds. Most notably, bonds provide investors
During Times of Market Volatility, Focus on What You Can Control
Amidst the vast uncertainty in the markets right now, it’s more important than ever for investors to understand the benefits—and limitations—of diversification. Having the right
What History Can Teach Us About Asset Class Diversification in 4 Charts
Setting your asset allocation is like drafting architectural plans when building a home; it provides a map to guide the construction of your investment portfolio.
How the Timing of a Stock Market Crash Can Impact a Retirement Plan
There’s plenty for investors to worry about when their financial livelihood is on the line. When planning for major financial decisions such as retirement, individuals
Investing Outside of the S&P 500
If you’ve ever heard excerpts from the latest Apple earnings report, you may have thought, ‘so what?’ Well, for many investors, Apple’s relative performance could
How to Manage Your Investments: 6 Components of a Successful Strategy
Like many things in life, managing your own investments becomes more complex as you get older. For young professionals just starting out, it makes sense