• April 20, 2024

Investing in tough ecconomic times – Part II

This is continuation of our last post.

Fine-Tuning Your Portfolio
Once you’ve made the big decision as to what your stock/bond allocation should be, it’s time to do your fine-tuning.

Just as stocks and bonds tend to poorly correlate, different kinds of stocks and different kinds of bonds similarly have limited correlation. That’s especially true on the stock side of the portfolio. Smart investors will make sure to have both domestic and foreign stocks, stocks in both large companies and small companies, and both value and growth stocks. Growth stocks are stocks in fast-moving companies in fast-moving industries, such as technology. Value stocks are stocks in companies that have less growth potential, but you may be able to get their stock on the cheap, at times making them better investments than growth stocks.

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Investing in tough ecconomic times – Part I

The past few years have been the ugliest thing to hit Wall Street in a very long time. We don’t need to tell you….Pick up a newspaper….Turn on the TV….Look at your dwindling account balance. Some pundits are telling us that this is the end of everything, and the collapse of the entire economy is…

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Risk, Returns, and Regret in Bond Investing

“It’s a conundrum.” This is what ex-Federal Reserve Chairman Alan Greenspan said of the state of long-term interest rates. The situation that exists—with short-term rates getting measured increases, while long-term rates haven’t moved much—is a topic of confusion for many people, not just Greenspan. Now we are concerned with another conundrum: Principal guarantees within bond…

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