When it comes to evaluating investment performance, the Sharpe Ratio has become one of the most respected tools. Named after Nobel laureate William F. Sharpe, the Sharpe Ratio is more than just a statistical measure; it’s a powerful tool that helps investors understand the risk-adjusted return of an investment strategy. In this article, we’ll explore …
If you’ve ever worked with a financial planner or investment advisor, there’s a good chance you’re using an investment strategy known as strategic asset allocation. While you may not know it by that name, you’re probably familiar with how it works. What you may not be of aware of, however, are how recent changes in financial markets have made this approach to investing more dangerous than ever before.
Investing is very much a mental game. It requires an intellectual toughness and fortitude that is not only uncommon, but very difficult to develop. In this article we discuss the mental resilience that investors need to cultivate in order to stomach the fluctuations that come with being a successful investor.
With the Federal Reserve having recently raised interest rates for the fourth time since the financial crisis, we thought it was an opportune time to discuss how changes in interest rates affect you as an investor. In this article we discuss the role of interest rates in an economy, how those interest rates change over time, and how those changes affect the value of different components of your portfolio.
With each and every investment that you make, you’re going to be giving up one benefit in exchange for another. Most of the time, this trade-off is between risk and potential return. Understanding this trade-off at a conceptual level will go a long way in helping you to select the right investments (or strategies) on your path to retirement.
