A student in my Investment Mathematics class asked me how often you need to rebalance. The most common guideline we found was "at least once a year," but we knew that the answer should depend on the value of your portfolio.
I cover housing and finance for The Huffington Post. Yet on Nov. 21, 2007, I bought into the company identified more than any other with the subprime bubble and subsequent crash. I bought a $1,037 chunk of Countrywide Financial.
Most often, investors looking for higher returns from their bond holdings invest in actively managed bond funds. They believe an active bond manager has the investment skill likely to increase returns over the benchmark index, while taking no more risk.
A 10 year record of stellar performance is not predictive of future performance. Instead, investors would be far better served limiting their portfolios to globally diversified, low-management fee index funds in an appropriate asset allocation.
those attending presumably assumed they were there to learn from real "alpha" experts, which is a fancy term describing the value added by a fund manager over its designated benchmark. They must have been disappointed.
Mr. Biggs has been "big" in the world of securities prognosticators for many years. He was the formerly the head strategist at Morgan Stanley where he was reportedly responsible for the formation of its investment management business.
If you want to learn how to invest like Warren Buffett, you've got to learn how to sell investments effectively. Selling in this case can mean selling to take a profit or selling to take a loss to free up the cash and to emotionally move on.
Many articles on the subject of money talk about different ways to invest the money. Few of the pieces, however, address the key issue underlying any allocation which may be keeping investors up at night.