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Accretive Wealth Blog

Diversification May Help to Reduce Risk

Wednesday, May 28, 2014

Asset Class Chart.jpgDiversifying your investments is as much common sense as it is investment science. You can diversify by investing across asset classes and by geographic regions. Asset classes include stocks, bonds, cash, real assets, and alternative investment strategies, and within those asset classes are other opportunities for diversification.

The price of stocks, bonds, and other investments don’t all move in tandem. The price of each stock is affected by a combination of different elements, including not just the company’s own performance and the health of the company’s industry but also consumer worries and the health of domestic and global economies. Continue reading “Diversification May Help to Reduce Risk” »

Making Rational Investment Decisions

Wednesday, May 7, 2014

buyCan people become rational investors? Or is there something we do that prevents us from consistently making sophisticated financial decisions?

Human motives and fears are now being recognized as an inherent part of investor behavior. How people invest, what stocks or funds they select, and their attraction to risky investments are among the factors being examined to determine the path investors take between objectively evaluating financial advice and succumbing to psychological traps that cause financial losses. Continue reading “Making Rational Investment Decisions” »