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Posts from the ‘Portfolio Management’ Category

The Difference Between Alpha and Beta

Anyone who follows the financial news has probably heard the terms “alpha” and “beta” in relation to investing. However, it’s rarely explained how important they are when it comes to making investment decisions.

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Liquid Alternatives − Don’t Go With the Flow

I’ve written previously about market volatility and how severe volatility can hurt overall portfolio return.

It should always be understood, when in the market, that volatility comes with the territory.  Still, investors can manage the impacts of volatility through portfolio diversification. Diversification doesn’t assure a profit or protect against a loss in a market decline, but it can help to smooth the shocks in an investment portfolio.

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Does CPI Give a True Inflation Picture?

Many investors may not understand the Consumer Price Index (CPI). But it almost certainly affects them personally. Consider retirees living on a fixed income or employees factoring an inflation rate into their retirement plans. And, of course, we all feel the impact of rising costs at the pump, at the grocery store, and just about everywhere else. Read more

Oh, my stomach!

They have names like the Intimidator, Tower of Terror, and that classic: the Cyclone. But I think the most unnerving monster of a roller coaster goes by the name Market Volatility.

Amusement park thrill rides can be fun, but roller coaster-type returns in your portfolio – the sharp swings in value up and down over relatively short periods of time – aren’t very amusing, and could be detrimental to your investment goals. Read more