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Alternative Indexing

On 06/20/2013, in Investment Concepts, by Jordan Wilson

I typically recommend smaller investors utilize passive investment techniques. That is, investing in open-ended no-load index mutual or exchange traded funds.

I have not mentioned that there are different ways to construct market indices. There are.

The normal market index is weighted by market capitalization. The bigger the company, the higher the weight in the index. The vast majority of index funds you consider will be this type.

But there are alternative indexing options out there too. I want to touch on them today. 

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Benjamin Graham Investing Principles

On 03/14/2012, in Investment Strategies, by Jordan Wilson

I mentioned Benjamin Graham in “Mistakes of Warren Buffett” and recommended his book, “The Intelligent Investor”.

Benjamin Graham mentored Warren Buffet and is considered the founder of value investing.

Today, a quick summary on Benjamin Graham and his three key principles for value investing. While they may not turn you into the next Warren Buffett, these investment tips will make you a better investor. 

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Emotional Investing Decisions

On 01/19/2012, in Investment Strategies, by Jordan Wilson

Investing based on emotions or instincts is a difficult issue.

So challenging that an entire field, Behavioural Finance, examines how investor psychology and emotions affect investment decisions.

Recently I read an article where the author believes that financial planners prefer clients with little investment knowledge. That way, it is easier to sell them whatever you want.

Yes, there are financial planners, brokers, etc., that operate this way. But in my experience, good financial planners would rather deal with well-educated investors.

And often the reason relates directly to emotional investing. 

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Recession Babies?

On 11/30/2011, in Asset Allocation, Investment Strategies, by Jordan Wilson

Younger investors should be willing to take on the most investment risk.

This is due to the classic risk-return tradeoff from Investing 101. The greater the risk assumed, the higher the expected return over time.

However, young investors today are shying away from risk in their portfolios.

Why is this the case?

Is it because young investors were “recession babies”? 

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Common Investment Benchmarks

On 05/06/2011, in Investment Strategies, by Jordan Wilson

Investors can select from a wide variety of ready made financial benchmarks for their investment portfolios.

An appropriate benchmark should reflect your actual portfolio as closely as possible. An apples to apples comparison.

The chosen benchmark should also be easy to calculate for comparative purposes. If you cannot get access to timely data, even the best of benchmarks will be of little practical value.

Today we shall look at common benchmarks used by many investors. 

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Defining Investment Risk

On 05/07/2010, in Investment Concepts, by Jordan Wilson

What is investment risk?

Investment risk is a form of speculative risk. Speculative risks differ from pure risks in that with a speculative risk there is a possibility of gain, not just loss or no change in status.

But what does that mean?

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