Month: August 2015

Five Thoughts On The Current Market Correction

The 531 point drop in the Dow Jones Industrial Average on Friday August 21st was certainly headline-grabbing in its magnitude. It represented a one-day 3.1% drop in the index and resulted in a 10% correction from its high in May. It’s completely natural during such times for your stomach to turn over as you worry…
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Does Rebalancing Your Portfolio Really Work?

You’ve probably heard or read that you should periodically rebalance your investment portfolio.  That means selling assets from asset classes that currently exceed your target allocation and buying more in asset classes that lag, in order to maintain your target allocation over time.  The presumed benefit is higher returns, reduced portfolio risk, or both.  Unfortunately,…
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Rate Changes Impact Individual Bonds Too

With interest rates at historical lows right now, the question facing bond investors is whether to buy individual bonds or bond mutual funds. Since bonds will drop in price when interest rates rise, common wisdom suggests that if you purchase an individual bond and hold it to maturity, you are guaranteed to get the full…
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