(Lack of) Credit Ratings by Country

On 05/20/2011, in Economics, by Jordan Wilson

Countries continue to finance their activities through deficit spending, resulting in substantial accumulated debt.

This devalues the worth of a country.

As with individuals, high debt results in poor credit ratings as the risk of default increases. This can have a significantly negative effect on a country and its residents. 

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Risk-Return in Asset Subclasses

On 01/31/2011, in Investment Strategies, by Jordan Wilson

Asset classes have general risk-return characteristics.

Cash is low risk, low return. Fixed income is riskier and has higher returns than cash. Common shares have the highest risk and expected return of the core asst classes.

But you need to exercise care when selecting investments within a specific asset class. There can be significant fluctuations in risk-return profiles between investment options in each class.

We will look at a few examples today.

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Open-End Index Mutual Funds

On 11/07/2010, in Mutual Funds, by Jordan Wilson

Many investors passively invest using open-end index mutual and exchange traded funds.

Some investors lump the two instruments together when discussing passive holdings. And there are a lot of similarities when assessing for investment potential.

But there are also material differences between the two, so I shall discuss them separately.

Today we will take a very brief look at open-end index mutual funds.

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Nonsystematic Risk – Part II

On 05/21/2010, in Investment Concepts, by Jordan Wilson

Today we will look at a few more types of nonsystematic risks.

If you missed first instalment, please check out Nonsystematic Risk – Part I.

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