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Tips to Diversify Your Portfolio

On 05/12/2013, in Investment Strategies, by Jordan Wilson

Diversification is crucial for long-term investment success.

Proper diversification, that is.

Today, how to better diversify your investment portfolio. 

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3 Essential Investment Rules

On 04/09/2013, in Investment Strategies, by Jordan Wilson

StreetAuthority looks at three essential investment rules of master investor, Peter Lynch.

Excellent investment advice for those wishing to invest in individual equities.

Unfortunately, I do not know any non-professional investors who could actually follow two of the three keys. Ah, the joys of investment advice.

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Portfolio Rebalancing Strategies

On 09/03/2012, in Investment Strategies, by Jordan Wilson

Defining a target asset allocation is critical to investment success.

Equally important is ongoing portfolio monitoring and periodically rebalancing the actual asset allocation back to your target allocation.

The Wall Street Journal has a good article on strategies for rebalancing investment portfolios.

Worth reading in its entirety, buy I want to highlight a few points. 

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Dangers of Dividend Funds

On 05/13/2012, in Equities, Mutual Funds, by Jordan Wilson

Dividend funds are currently very popular with investors.

In many parts of the world, interest rate yields are quite low on a historical basis. To enhance returns, fixed income investors have turned to riskier investments that may offer higher yields. Such as dividends on preferred shares or dividend paying common shares.

As well, general equity investors are turning to perceived “safer” equity investments. Common shares in large, dividend paying companies. Shares that provide capital gains potential over time, but are back-stopped by a (hopefully) steady stream of dividend income.

Sounds like a good strategy to me. But there are always risks when investing.

Here are a few things to consider when assessing dividend funds (or dividend paying shares). 

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Thoughts on Portfolio Rebalancing

On 06/24/2011, in Investment Strategies, by Jordan Wilson

The goal of portfolio rebalancing is to bring your actual asset allocation back in line with your target allocation.

Your target allocation should be based on your Investment Policy Statement (IPS). This reflects your personal circumstances, investment objectives, constraints, risk tolerance, etc.

Who you are as an investor. 

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You should compare your portfolio’s performance against predetermined target benchmarks.

We have already covered a few useful benchmarks.

Arbitrary return figures such as nil, the risk-free rate, or a required rate of return based on your needs.

Relevant publicly available indices that reflect the composition and risk of your actual portfolio.

If investing in funds, comparing your portfolio returns and expenses against the funds’ peers.

There is one other important benchmark that we have not yet covered. 

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