Diversification is one of the most cherished principles of investing. I long for a better phrase than “don’t put all your eggs in one basket,” but it tells the diversification story in a nutshell. That’s one of the reasons why mutual funds and EFTs (exchange traded funds) are a good choice for many. You can invest in many different securities…
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The Reality of Models
While models can be useful for gaining insights into good decision-making, they are simplifications of reality. In truth, the reality of markets cannot be fully explained by a model alone. Think of a weather forecast. Using data on current and past weather conditions, a meteorologist can make assumptions and predict what the weather will be in the future. This may…
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2017 in Review
The year 2017 was full of news that had us riveted to the screen to see what would happen next. The stock market grew despite events that could have been challenging at any other time in history, such as the Russian probe, Federal interest rate increases, damaging hurricanes, domestic violence, and a potential struggle over the debt ceiling. The President…
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When Rates Go Up, Do Stocks Go Down?
Should we worry about interest rates? Research shows that changes in interest rates and bond prices are largely unpredictable. So an investment strategy based on attempting to exploit these sorts of changes isn’t likely going to be fruitful. Despite the unpredictable nature of interest rate changes, you may still be curious about what might happen to stocks if interest rates…
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Do You Need a Will?
A will is often the cornerstone of an estate plan, and in most cases, yes, you should have one. A will can enable you to leave your property to anyone you choose – be it your partner or spouse, a child, other relatives, friends, a trust, or a charity – as well as make clear your intentions for healthcare and…
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