Asset Allocation Guide: Dealing with conflicting goals
Today we conclude our series on how best to make asset allocation decisions. It’s an easy decision when the analysis of your ability, willingness and need to take risk leads to the same conclusion. For example, one can have a high ability and willingness to...
Asset Allocation Guide: How Much Risk Should You Take
Today, we begin a series designed to help you determine the best way to allocate your assets. I have written a great deal on this subject, but it's advice worth repeating time and again. We’ll start with focusing on the ability to take risk.
Media anoints investment gurus, should you pay attention?
Some high profile investors are good at what they do, while others might just be lucky. Often it is hard to differentiate between the two groups, as both can boast of high returns. The media, meanwhile, quick to jump in and snap up a headline, sings the praises of these winning investors, without identifying who among them made strategic moves and who was just lucky -- giving the impression that they are all people to watch.
Poking Holes in the Inflation Conspiracy Theory
The academic research makes clear that the best hedge against unexpected inflation is Treasury Inflation Protection Securities (TIPS). Despite the evidence, many investors won’t invest in TIPS because they believe that the U.S. government is (or will) cheat by underreporting...
Take the Plunge, or Drip by Drip?
One of the questions I am most asked goes something like this: “I have a large amount of cash to invest. Should I invest it all at once or spread the investment out over time?” Perhaps the cash comes from...
