Wednesday , 29 May 2024

Asset Allocation

Don’t Confuse "Risk" with "Volatility" – It Could Have Dire Consequences on Your Investments (+2K Views)

A large number of investment professionals confuse risk and volatility to the point where the terms are treated as being virtually synonymous. This has resulted in the flawed investment principle that reducing volatility will (and must) reduce risk. Such thinking is deeply misguided, and following it has dire consequences for investors. Let me explain more about what risk and volatility are and are not.

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It is Imperative to Invest in Physical Gold and/or Silver NOW – Here’s Why (+2K Views)

Asset allocation is one of the most crucial aspects of building a diversified and sustainable portfolio that not only preserves and grows wealth, but also weathers the twists and turns that ever-changing market conditions can throw at it. However, while the average [financial] advisor or investor spends a great deal of time carefully analyzing and picking the right stocks or sectors, the basic and primary task of asset allocation is often overlooked. [According to research by both Wainwright Economics and Ibbotson Associates and the current Dow:gold ratio, allocating a portion of one's portfolio to gold and/or silver and/or platinum is imperative to protect and grow one's financial assets. Let me explain.] Words:1060

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Will There Be Anywhere to Hide When the Markets Start Tanking?

According to a new study from the IMF, correlations in general are much more elevated these days than they were before the financial crisis. In other words, there are fewer places to hide in the markets when the markets start tanking. Check out their Global Financial Stability Report that's been described as "not for the faint-hearted." and the red bars in the chart below.

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True or False: Peace is Bullish for Stocks

It would seem logical to say that peace allows companies to focus on manufacturing goods, providing services, innovation and competition, all of which helps the overall economy but does peace, in fact, have anything to do with determining stock prices?

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