Re-thinking Asset Allocation and Correlation

July 26, 2010 by  
Filed under Investing

A bedrock principle of asset allocation for the long term investor is asset correlation. The theory is that a properly allocated portfolio includes investments in different asset categories or classes that are non-correlated. This means that as general market and economic conditions change, the different asset classes won’t experience a lockstep change in value. In other words, you don’t want the value of all of your investments to rise and fall together, particularly the “fall” part.  Read more

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When Inflation Attacks, Gold is Not the Defensive Weapon of Choice

August 19, 2008 by  
Filed under Investing, Retirement Planning

Inflation is Attacking (But You Knew That Already)

A proper financial plan and retirement plan needs to include an inflation protection strategy.  The news on the inflation front is not good.  (You probably didn’t need me to tell you that.)  Read more

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