Diversification

Embrace Diversification

Nathan Geraci is President of The ETF Store, Inc. and host of ETF Prime. After limping to a 2.5% gain during the first six months of the year, the S&P 500 surged more than 7% in the third quarter to all-time highs.  Stocks posted strong gains despite global trade concerns, rising interest rates, partisan political discourse, and a bull market some view as long in the tooth.  Underpinning the market’s ascent was a healthy economic backdrop, with the latest measure of GDP showing a 4.2% annual growth rate and unemployment near 50-year lows.  U.S. companies are riding the wave of an

Read More...

For Investors, “Home Bias” Can Lead To A Failure To Launch

The following was authored by Bill McNabb, Chairman and Chief Executive Officer of Vanguard. “Buy what you know.” It’s one of the adages of investing, and it has plenty of intuitive appeal. After all, the familiar seems inherently less risky. It’s no wonder that many investors heavily tilt their portfolios toward the stocks and bonds of their home country. This is known as “home bias.” U.S. investors sometimes think they can get all the global diversification they need by owning shares of U.S.-based multinational companies. And that may seem like the best of both worlds: international diversification without ever leaving the

Read More...

How Diversifying Can Help You Manage Market Mayhem

The following was authored by Heather Pelant, Personal Investor Strategist at BlackRock The recent market volatility, while not unexpected, has certainly been hard for any investor to digest. If you are feeling a tad queasy, you aren’t alone. It’s an apt moment to pause and remind ourselves of the importance of diversification to help your portfolio ride through market turmoil. What is Proper Diversification? While attempting to teach my youngest daughter about nutrition over the summer, I pulled up the nutrition wheel. As I showed her the various food groups, I was reminded of a diversified portfolio with all its asset classes.

Read More...

Are You Really Diversified?

We explain what the weather in Miami has to do with your investment portfolio and why proper diversification is critical in today’s markets.  Simeon Hyman, Head of Investment Strategy at ProShares, also discusses the importance of alternative investments and spotlights several ProShares ETFs.

Read More...

Does Diversification Still Work?

Nathan Geraci is President of The ETF Store, Inc. and host of the weekly radio show “The ETF Store Show“. With the S&P 500 index up over 27% year-to-date and smaller cap stocks logging even larger gains, 2013 has been one of the more exciting years on record for investors in US stocks.  However, investors holding broadly diversified portfolios might feel like they’ve missed out on the party of the decade.  While US stocks have surged ahead, other asset classes have had less than stellar and, in some cases, downright awful years.  Consider that a popular measure of broad-based US bonds,

Read More...