Investing For Beginners – Free Investment Articles and Tutorials

Posts Tagged ‘Asset Allocation’

I previously outlined some advertisements that wirehouses (Salomon Smith Barney, Morgan Stanley, Prudential Financial, and Merrill Lynch) placed in major newspapers and magazines across the country. These ads contained general concepts that reps need to know, such as discouraging certain unsuitable trades and monitoring customer portfolios.

The printing presses continue to produce mass marketing materials relating to all types of advice that reps need to know. Considering that the investing public is nervous about their investments and the markets, we expect this trend to continue in full, if not greater, force. Some of the advice is quite precise. Of course, the more precise the advice, the more brokers will hear about it in customer arbitrations. The strong upward trend in arbitration filings, incidentally, should keep pace with the strong upward trend in wirehouse advertising.
Read the rest of this entry »

Asset allocation refers to the positioning of various assets in an investor’s portfolio with the intention of maximizing the potential for a return on the investor’s money. Diversification can be important in investing and a good method of asset allocation can often make the difference in thousands of dollars’ worth of investment return to the investor.
Read the rest of this entry »

Asset Allocation refers to methods and guidelines for diversification of an investment portfolio.

Most people would agree that flying in an airplane involves some risk but skydiving is probably riskier. However, for a skydiver willing to take the risk the return in investment (jumping out vs. safely staying in the plane) is usually worth the added risk. Diversifying a financial portfolio can be seen as analogous to a skydiver–stay in the safe plane or brave the heights and soar. However, our skydiver is just one person.
Read the rest of this entry »