Learn about investing, trading, retirement, banking, personal finance and more.
Asset allocation is theoretically the best way to control the return you experience, through diversification and rebalancing.
Asset allocation theories provide you with mechanisms to diversify your money among various asset classes, such as stocks, bonds, real estate, commodities, precious metals, etc.
The benefit of asset allocation is twofold: first, nobody knows which asset class will perform better at any given time, and second, various asset classes are not entirely correlated or have a negative correlation, which provides a hedge. If one asset class appreciates significantly, the other might not, but, if the allocation is done correctly, this may be exactly what the investor was looking for.
If a lot of growth and upside potential is desired, a larger proportion of the allocation should go toward growth instruments, and vice versa. Rebalancing will keep the investor from becoming top-heavy or exposing too much of their assets to risk: periodically the gains will be distributed among the more conservative asset classes and thereby will be preserved.
Large financial institutions and pension funds constantly update and maintain their asset allocations, and Tickeron can help you do the same.
How Often Do I Need to Rebalance My Portfolio?
Is Successful Asset Allocation an Art or a Science?
Based purely on statistics, the “best” performing stock ever between 1957 and 2007 was Phillip Morris (cigarette maker)
While a client should be involved in communication efforts as well, it’s really the advisor that should be reaching...
A 403(b) is extremely similar to a 401(k); the main difference is the type of employer than can offer each
The fixed assets to net worth ratio is a calculation intended to measure the solvency of a company
Securitization is to turn an asset which would otherwise not be a liquid, tradable security, into one
Credit debt or credit card debt is a type of consumer debt that is incurred through a short-term revolving loan facility
Backtesting is to simulate what it would have been like to use a certain strategy or indicator in the past | Options
Some life insurance policies allow for death benefits to be accelerated as living benefits under certain conditions
Commodity indexes are informational services which reflect the price action in a designated commodity or basket of them
A living trust describes a trust designed to transfer assets to beneficiaries upon the death of the owner/grantor