Investing

The Role of Valuation

Many financial pundits have expressed concerns over what they deem to be elevated valuation levels for the stock market over the past several years. Relative to history, stock valuations are certainly elevated. Before proceeding, I want to make sure everyone knows what I mean by valuation. First, valuation is not price although the two are …

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Investing

The Power of Compounding

Drawdowns We’ve discussed the importance, as well as the benefits, of diversification in several recent posts. One of the objectives of diversification is to minimize declines in your portfolio’s value (drawdowns) while still offering the potential for attractive returns. Why do we want to minimize drawdowns? The obvious answer is everybody wants to lose as …

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Investing

Measuring Up

Not All Financial Advisers Are Created Equally In the world of wealth management and financial advice there are many options. Some financial advisers are advisers in title only with little to no meaningful relevant training and/or experience, are effectively salespeople of their respective companies’ products and have no legal obligation to act in their clients’ …

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Investing

Going Global

Another Perspective In our previous two posts, we’ve discussed asset class diversification and investment strategy diversification. In today’s post we’re going to discuss the importance of geographic diversification, which is commonly missing from investor portfolios, especially in the U.S. Not surprisingly, most investors have a geographic preference for their home country within their investment portfolios. In …

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