Defining Standard Deviation Standard deviation refers to the fluctuation in the value of your portfolio. The ups and downs of a portfolio can be thought of as a roller coaster. How scary is the roller coaster? A roller coaster that is … Continue reading
Category Archives: Portfolio Management
In Short As a portfolio gets larger, the growth occurs on an expanding base, which means the amount of growth you experience each year is increasing. Compounding means you are earning money on your past earnings. For Example Say you … Continue reading
Introduction If you look at a security, there is a lot of noise. Every day the security goes up and down, sometimes by a few cents and sometimes by many dollars. If you average out all those prices, you get … Continue reading
In Short There are 2 main ways that a brokerage house makes money. Those ways are through commissions and interest on cash balances. Commissions This type is what most people automatically think of when it comes to this topic. Every time … Continue reading
I wanted to let everyone know that I just uploaded a free e-book. To download a copy of “A Simple Overview of Financial Planning. Book 1: Market Overview”, please click this link or go to the menu on the top … Continue reading
What is a Commodity? A commodity as it is defined in the financial markets is a physical good that is considered the same as all other goods of that same commodity classification. For example: cattle is a commodity. One cow … Continue reading
Short Answer Buying stock in the company you work for is usually but not always a bad idea. Emotional Objectivity You have to evaluate the prospects/value of the company. If you work there, you will be sucked up in the … Continue reading
Definition Rebalancing is simply buying and selling things in a portfolio so a particular asset class is a previously agreed upon percentage of the portfolio. For Example A client (with a $100,000 portfolio) told their advisor they want their portfolio … Continue reading