By Max Osbon Over time unforeseen risks can and will accumulate in a portfolio. Interest rate risks, market risks, inflation risks, default risks, and the risk of improper diversification are examples of potential pitfalls that must be persistently monitored.
In about four months my son Max and I will proudly take the field at Columbia University’s Wien Stadium for The RBC Decathlon where we’ll give it our all for the benefit of Memorial Sloan-Kettering Cancer Center. We’re excited for … Continue reading
When one basket of stocks pays a 2 percent dividend yield, and another, seemingly very similar one pays 6 percent, which one do you want to own? In today’s one percent bond yield world, it’s not a hypothetical question. Two … Continue reading
Last week we discussed how owning international securities adds an extra layer of risk, due to currency exchange rates. This time we look at the actual year-to-date return of major indexes, both before and after currency conversions. The big currency … Continue reading
Many US investors are just that: they invest mostly in US stocks and bonds. But many also diversify their investments outside our borders, buying securities domiciled in other countries, and denominated in their respective currencies. What are the risks related to … Continue reading
You know the feeling. You hear noisy headlines trumpeting the latest Default, Plunge, Scandal, or Imminent Crisis. Your heart rate quickens. You wonder if you’re in danger. You feel, depending on your personality, paralyzed by doubt, or compelled to do something…anything. That … Continue reading
I often comment on how difficult it is to predict which securities will rise above their peers to deliver higher returns. Frustrating as it may be, there’s just no systematic way to consistently identify winners and losers in advance. However … Continue reading
All eyes, some red with market fatigue, are on the Dow and other benchmarks. After 10 days of staggering declines, I imagine there are still many investors with their fingers poised on the panic button, ready at the next sign … Continue reading
Last week I talked about faith-based investing as represented by the $9 trillion US Treasury securities market, and the promise to repay backed by the “full faith and credit” of the United States government. This week I would like to … Continue reading
Each of my 25+ years in the investment industry has reinforced one key idea it's impossible to predict the future, but essential to prepare for it.
This blog discusses developments in the economy, politics, and the markets, all from the perspective of what matters most to individual investors. Don't look for wild predictions, urgent stock picks, or hot deals. Instead, expect clear, practical ideas on investing and wealth preservation that help investors make responsible financial plans.