There is no getting by our emotions at any time, especially when it comes to investing. The same brain chemicals and responses to kittens (friendly), or lions (fear) right in front of us, also happen when we look at our investments; good markets (friendly) and bad markets (fear). Add to fears of misbehaving markets, are recessions, inflation (or […]
Rebalancing is a portfolio management tool designed to get your portfolio back to your original target. Why? Because with time your allocation drifts and you take on a different risk profile with a different portfolio allocation. Let’s assume you are not investing in individual stocks (which may go to zero for a complete loss). Instead you […]
Risk and Return. Let us imagine the markets like highway driving. All lanes go to the same place. It’s just a matter of how fast, or slow, you want to go to get there. Faster lanes arrive sooner, but have a higher risk that something happens and you end up getting there later than a […]
