Avoid Self-Inflicted Losses in a Down Market
Declines in the financial markets are an uncomfortable part of investing. Taking steps to plan ahead of a market decline is best, though what you
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.
Developing an Exit Strategy for Stock Options in a Down Market
Stocks are down this year, pretty much across the board. Unfortunately, there are some companies that won’t survive the downturn. Even for the ones that
Reasons to Include International Investments in Your Portfolio
The United States currently represents 60% of the global equity market.¹ This means investors with an extreme home bias are ignoring 40% of the equity
Ways to Prepare Your Finances for Unknowns, Including Recessions or Market Downturns
“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves.” – Peter
3 Biggest Mistakes Investors Make in Volatile Markets
Investing through market volatility can be challenging. Should you go to cash? What investments perform the best during a market selloff? Is it a good
Here’s Why it Might be a Good Time to Rebalance Your Portfolio
Rebalancing your portfolio is an important part of managing your money. Rebalancing means buying and selling positions in your portfolio to get back to your
Is Bigger Better? Stocks Tend to Underperform After Joining Top 10
With the dominance of the largest U.S. stocks often occupying headlines, it’s worth remembering that the biggest companies don’t always produce the best returns. In
Trading vs. Investing: Which Is Better for Long-Term Goals?
Tesla, GameStop, Hertz, Dogecoin: retail traders continue to dominate headlines in the financial news media. Some individuals may be wondering, how is trading different from
Should I Invest When the Market is High? Dispelling the Buy Low, Sell High Myth
Most investors realize trying to time the market by always buying low and selling high isn’t a realistic endeavor. Yet even with that knowledge, if
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