diversification

Much has been written about the strength of the U.S. markets in 2019. U.S. large-cap stocks rose 31.5%, their best year since 2013.  That’s a great year for domestic investors, but I fear it causes some to miss one of the key points of investing, which is that markets move in cycles....

The overwhelming transparency of exchange-traded funds (ETFs) allows for enhanced research capabilities of the underlying holdings. This can be particularly useful when trying to pinpoint a diversified fund with outsized exposure to a particular stock. For instance, in looking for a list of the...

Wouldn’t it be nice to know how to use data to determine the perfect investment? In 1952, Harry Markowitz published an article titled “Portfolio Selection.” Prior to Markowitz, examination of investment alternatives had been primarily focused on individual assets. Markowitz...

Investing in fixed-income using ETFs has evolved to include many sophisticated strategies. Investors can now choose among a variety of duration, sector, credit and global options. In addition, ETF providers are now focusing their efforts on target maturity funds to mimic the defined maturity...

Volatility has returned in 2014 after consecutive months of relative calm that has many investors looking for ways to profit on the downside or hedge existing positions.  Advanced traders may be seeking out options strategies or shorting individual stocks to great effect, but another...

Many investors unwittingly ruin their chances at meeting their investment goals by owning too many stocks. Diversification is a great concept, but only when used correctly. Economics professors often teach the concept of "guns and butter." In times of peace, one wants to invest in butter. In...