So much for diversification of manager risk.
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Mr Swensen argues that diversification is a better form of risk control than liquidity.
New lessons have been learned in the past few months about diversification and the management of credit risk.
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Understand your current portfolio, i.e. what is the expected return, what is the level of risk and what is the level of diversification.
Barrick has four new low-cost mines coming on stream over the next four years, and Nystrom says Barrick's execution risk is low because of ownership of several mines, and that political risk is also mitigated because of geographic diversification.
At the beginning of the bull market, the diversification provided by a fund was a good way of reducing risk.
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Third: Your ability to withstand market volatility should determine what percentage of stocks you should own and what degree of diversification is appropriate to mitigate concentration risk.
The bottom line: The resumption of easy money policy by the Federal Reserve in the aftermath of the 2008 financial crisis has re-affirmed and broadened the positive correlation of different asset categories, undermining the effectiveness of asset diversification strategy in reducing market risk.
Investment in bonds as part of portfolio diversification should be done via a mix of sectors matching your income needs, risk tolerance and interest rate outlook.
In other words, global diversification helps to improve the risk-adjusted performance of the portfolio.
Gold, said the WGC, offers portfolio diversification since it lacks the credit and counterparty risk of other investments.
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Diversification among different asset classes helps reduce the risk of a large loss.
This principle of diversification works in increasing returns and in reducing risk.
The common assumption that has prevailed among money managers over time is that asset allocation among stocks, bonds and cash helps to mitigate the risk of suffering market losses through diversification.
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This calls for investors to revisit their portfolio strategies to incorporate a wider range of asset classes and sectors to help provide the diversification and risk adjusted return potential that is needed to navigate these uncertain and volatile markets.
Diversification and regular rebalancing may decrease the impact of market volatility, but the risk of losing money will still exist.
These would include: an investor cannot pick the return but can only choose the level of risk, One cannot accurately predict the market, Diversification lowers risk, Invest to be on the Efficient Frontier and low cost investments can improve performance vs. high costs.
Many investors in the Asian markets prefer to invest offshore for risk diversification, or are forced to look overseas due to a lack of experienced and reputable wealth managers in their home markets, according to the report.
Thanks to the diversification made possible by the Internet, the rewards will go to those who assume the risk of doing badly in bad times.
Much of Agilent's risk management, and future investment, rests in product and geographic diversification.
The idea here is that having a basket of funds or assets enables a more laissez-faire approach, since risk is being managed through diversification.
The new securities would possess a unique combination of attributes, including inflation protection, freedom from default risk, freedom from all taxes, ultimate diversification, and upside potential based upon future improvements in economic policy.
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