Sunday , 24 November 2024

Lorimer Wilson

Portfolio Diversification: Do You Need It? (+2K Views)

Do you really need portfolio diversification?...Everyone assumes that broad asset class portfolio diversification is advantageous...[as it] reduces the risk associated with events that can trigger a decline in any one asset class...[and makes] financial planning more reliable and predictable by reducing the variations in portfolio performance from year to year. Simply put, portfolio diversification is a sound investment practice but, [that said,] exactly how much risk reduction, in actual numbers, is obtained through application of this philosophy? [Bottom line, is] asset class diversification all that it’s cracked up to be? This article...addresses...the benefits of diversification among various classes.

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Averaging Down: Bad Strategy?

Whenever some financial “pundit” says that the best way to get into a stock is by averaging down, we sometimes cringe. Why? Because, at best, you’ll be getting into a stock at a lower average price...but more importantly, you can be getting into a stock that’s poised to sink much, much lower and that’s a risk no one wants to take.

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Understanding Debt & How to Make Better Financial Decisions In Avoiding It

Debt plagues millions of Americans every day. It is such a common problem that many of us don't even think twice about what we owe, or how we landed in such a predicament. The simplest explanation is that debt happens when you spend more than you earn but it's not actually that simple when real life steps in. Unexpected events and bad planning...can leave you facing big debt that may take years to pay off. By understanding some of the main causes of debt, we can make better financial decisions in avoiding it. Let's take a look at some of the worst offenders.

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Record High American Debt Is A Recipe For Disaster! (+2K Views)

According to the just-released latest quarterly household debt and credit report by the NY Fed, Americans' debt rose to a new record high in the fourth quarter on the back of an increase in virtually every form of debt: from mortgage, to auto, student and credit card debt (although HELOCs posted a tiny decline). With interest rates on household credit rapidly rising, and with no savings to fall back on, this is a recipe for disaster.

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