Managing Risk Archives | Darrow Wealth Management

Diversification Forbes Managing Risk Stock options Sudden Wealth

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 do, getting back to Covid-era all-time highs is far from assured. For employees with stock options or owned shares, it may be time to reassess…

Kristin McKennaJuly 25, 2022

Asset Management Diversification Forbes Investing Managing Risk

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 universe. In truth, doing so over the last 14.5 years would have worked out for you, but markets are cyclical, so it's unlikely this lasts…

Kristin McKennaJune 27, 2022

Financial Planning Investing During a Crisis Managing Risk

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 Lynch Talking heads in the media and permabears love doomsday scenarios. They sky is always about to fall. Sometimes they're right, most times they're wrong.…

Kristin McKennaMarch 28, 2022

Diversification Forbes Investing Investing During a Crisis Managing Risk

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 time to consider tax-loss harvesting or buying the dip? Often, the best time to evaluate or make changes to your portfolio is before volatility arrives,…

Kristin McKennaMarch 7, 2022

Diversification Forbes Investing Managing Risk Rebalancing

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 original asset allocation. When one asset class significantly outperforms another, your portfolio drifts from its starting investment mix. This is important because unless you periodically rebalance,…

Kristin McKennaDecember 6, 2021

Diversification Forbes Investing Managing Risk

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 fact, according to research from Dimensional Fund Advisors, historically, stocks tend to underperform after entering the top 10 largest stocks by market capitalization. On average,…

Kristin McKennaJune 14, 2021

Brokerage Account Building Wealth Diversification Forbes Investing Managing Risk

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 investing and which is better? For investors saving for long-term goals like retirement, placing speculative bets on single stocks rarely makes sense. But that doesn't…

Kristin McKennaMay 3, 2021

Asset Management Building Wealth Forbes Investing Managing Risk

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 you have a substantial amount of cash to invest, the thought of investing when the stock market is hovering near all-time highs may give you…

Kristin McKennaMarch 15, 2021

Bonds Diversification Interest rates Investing Managing Risk

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 with income, diversification from stocks, and stability compared to riskier asset classes. There's a lot to know about bonds, but here are the bond basics…

Kristin McKennaFebruary 8, 2021

Bonds Diversification Investing Managing Risk

Stocks vs. Bonds: Differences in Risk and Return Make a 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 in an asset allocation. When you own a stock, you're buying a piece of equity ownership in the company. With bonds, you're buying the issuer's…

Kristin McKennaJanuary 25, 2021

Managing Risk