Sometimes our understanding is “incomplete.” Over the years we have observed that most people operate under one or more misconceptions regarding certain financial matters. In an effort to clarify a few of those misconceptions we offer the following brief quiz. Four questions are presented. Please click the hyperlink to indicate your response and view additional information. Question #1. Do you… Read more →
Tag: Portfolio Risk
“What goes up must come down. Spinning wheel got to go round…”
Perhaps you recognize this opening line to a popular song from 1969. David Clayton-Thomas was probably not thinking about portfolio theory when he wrote that lyric, but it does apply. Inefficient diversification can result in unnecessary risk. To cite but one fairly recent example, many investors can confirm that what went up in the 1990s did, indeed, come down in the early… Read more →