Posts Tagged ‘portfolio’
Is your portfolio too risky?
Many investors who have watched their account values consistently rise over the last decade are very happy with their investments. However, during times of low volatility and steady gains, investors may tend to under estimate the risk of their portfolios and overestimate their own investment prowess. Eventually, the stock market will have a bad year…
Read MoreRough road ahead for retirees?
When planning for retirement, it’s important to make several assumptions concerning expected investment returns, life expectancy and inflation. If you utilize conservative assumptions regarding these factors, your chances of not running out of money will improve. However, according to David Blanchett, the head of retirement research for Morningstar, stocks are likely to return in the…
Read MorePast performance is no guarantee of future results
There is a universal disclaimer that warns investors not to assume that the recent results of any particular investment will continue into the future. Despite this warning, when contemplating potential investment strategies, investors tend to place excessive weight on recent performance. After all, who wants to invest in a fund that lost 20 percent in…
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