There are many variables that make successful investing a challenge.
And one of your biggest foes may just be you.
What do I mean by this? (more…)
On 04/15/2012, In Investment Concepts, Investment Strategies, By Jordan Wilson
On 04/12/2012, In Investment Concepts, Mutual Funds, By Jordan Wilson
In the U.S., the Standard & Poor’s 500 stock index (S&P 500) is up 12.6% year to date 2012.
That is the good news. The bad?
Your mutual fund is likely not meeting or exceeding this benchmark.
Why the underperformance against investment benchmarks? (more…)
On 04/04/2012, In Investment Concepts, By Jordan Wilson
A relationship exists between investment risk and expected return.
The safer the asset, the lower the expected return. The greater the investment risk, the higher the required return. Or it can be a tad more technical if you like.
Investors should take an objective view of investment risk. Unfortunately, investors tend to be emotional creatures and these volatile times lead people to become fearful of investment risk.
So what is happening? And what should you do as an investor? (more…)
Investing in growth stocks normally requires a growth premium to be paid.
The growth premium reflects the above average expected growth rates in the company’s earnings. So you better be sure that the company earnings continue to grow over time.
There are a few areas of quantitive analysis to help assess future growth prospects. (more…)
I have written a bit about value investing lately. Mainly in the context of Warren Buffett and Benjamin Graham, two staunch advocates of value investing.
But there is also growth investing. A slightly different approach to investment analysis.
Today we will show a little love for those who wish to acquire growth stocks. (more…)
On 03/25/2012, In Financial Advisors, Investment Concepts, By Jordan Wilson
HighTower Advisors has created a great video comparing investment brokers with fiduciaries.
A broker is someone who takes a fee in exchange for executing a transaction. They provide a service in return for compensation. For the most part, a broker is not a fiduciary. However, brokers – depending on where they reside, professional qualifications, company, regulatory oversight, etc. – may have certain duties of care to their clients.
A fiduciary is someone with a legal duty of care to the client. It is more than simply executing transactions. More as if the fiduciary steps into your shoes to try and best meet your needs.
It is an important distinction. Make certain that you always know whether you are dealing with a fiduciary or not. I am not saying never to deal with a non-fiduciary. Only that you know the difference between the two. And, if appropriate, take steps to safeguard your best interests over those of your representative (agent, banker, broker, financial planner, etc.).
Now to the HighTower video. (more…)
On 12/31/2011, In Economics, Investment Concepts, By Jordan Wilson
Or an emerged market?
In our initial look at emerging markets, we saw that Brazil is included.
And if we look at its overall market characteristics, Brazil probably should be classified as an emerging economy. But in other aspects, perhaps not.
Consider today’s slightly funny example. (more…)
Emerging market investments can add value to one’s portfolio.
On the one hand, emerging market assets provide potential diversification benefits that help lower overall portfolio risk.
At the same time, emerging markets offer potentially higher returns than investments in developed markets. This helps enhance overall portfolio expected returns.
Lower portfolio risk, higher expected returns, count me in!
Well, like any investment, there are always a few strings attached. (more…)
On 12/11/2011, In Investment Concepts, Learning to Invest, By Jordan Wilson
Emerging markets are popular investments for many investors.
Why?
Emerging market investments may aid in reducing portfolio risk through enhanced diversification. At the same time, there is also the potential for higher returns in less developed markets.
Today we look at what constitutes an emerging market. (more…)
On 12/08/2011, In Financial Advisors, Investment Concepts, By Jordan Wilson
I read an article entitled, “Are You Saving Too Much for Retirement?”
I think it is a good article to discuss. No, the article itself is not good. Far from it. Rather this type of article is good to discuss. A big difference. (more…)
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