Bonds and stocks have only interacted negatively in the past 20 years. Their average correlation throughout the previous 65 years was positive. When this correlation isn’t negative, the 60/40 portfolio is weak in protecting your…
This year could be a volatile period for investors given the fact that a global financial crisis could be in the offering in the next several years Last year showed the best look and we…
What is a stock market bubble? How a stock market bubble is created? What is the definition? We are talking about a stock market bubble when the prices of stocks rise fast and a lot…
Before you start with asset allocation you have to choose what kind of investor you want to be. How do you see yourselves, like conservative, moderate or even aggressive investors? For any investor, filling the…
The barbell portfolio holds only short term and long term bonds and generates fixed income. A flattening yield curve situation is the best time to use this strategy, while a steepening curve is harmful to…
When stock prices drop, bond prices increase. A portfolio that holds stocks and bonds plays better than the one that holds only stocks. Diversification means to spread the risk across different types of investments. The…
(Updated October 2021) In some scenarios, bonds are riskier than stocks. The main problem is how to run your investments stable but not cutting the growth stocks have to give. Do you think the stocks…
Investing in stocks is a risky game. On some of them, you can have full or partial control. Risks of Investing in the stock market is a necessary part of investing. If investors want great…
Value stocks have underperformed since the beginning of 2007. But Goldman Sachs and Morgan Stanley claim that they have great potential. Value investing is coming back according to data from the last autumn. This granddaddy…
Stocks rose in the first five trading days in January. There is an old tale of the January Effect but is that true or myth? Stocks reached new records in the first five days of…