Articles: Investing Basics


Is this the right time to invest?
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April 28, 2008

We hear the question quite often from clients and other investors. “Is this a good time to get into the market?” You might think any good financial advisor could answer that question without breaking a sweat. But the question isn’t as simple as it might seem.

Ten things you should know about international investing
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April 22, 2008
A decade ago, when the U.S. stock market was in its glory years, successful investing seemed no more difficult than loading up on hot technology stocks. It seemed that the United States was boldly leading the world into a grand future.
Wisdom from the masters
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March 11, 2008
 By Paul Merriman

Sometimes the most powerful wisdom comes in compact packages. A great quotation can sum up a lifetime of experience in a few words, giving us all valuable lessons. Sometimes a quote itself can tell the whole story. But often the meaning must be teased out of it. Here are some of my favorite examples.
Ten ways to crash proof your investments
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February 27, 2008

Everybody’s a genius in a bull market, the old saying goes, but a bear market creates fear, uncertainty and costly mistakes.

The conventional definition of a bear market is a decline in prices of 20 percent or more, lasting at least two months. Whether Wall Street is in a bear market right now depends on what is being measured. But there’s no question this market has unsettled many investors.


Here are 10 ways to avoid permanent losses and crash-proof your portfolio ...

Ten consequences of taking too much risk
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February 08, 2008
Many people are feeling beaten up by the stock market over the past few months, and I’m often asked for market commentary. What do I think is happening? When will things get better? Should I get out now before things get worse? What’s the right thing to do?
Why we still don't favor commodities
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January 31, 2008
By Dennis Tilley

Director of Alternative Investments

Do commodities have a rightful place in a broadly diversified portfolio? The obvious answer seems to be yes, they do. However, after a lot of careful study and thought we have concluded that the right answer is still no, they don’t.

Commodity prices across the board are at all time highs.  Experts say the world is running out of natural resources and that production will not keep up with the rising demand from fast growing emerging economies. 

From a portfolio point of view, commodities also have attractive characteristics.  While commodity prices are quite volatile, they tend to zig and zag independently of stock and bond prices.  Due to the uncorrelated price movements, adding a small amount of commodity exposure can actually lower overall portfolio risk for a given expected return. 


Why you should invest in REITs
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August 24, 2009

Right now real estate seems to be in the doghouse. Home prices are hurting, as are millions of mortgagees (to say nothing of investors) snared by the subprime real estate mess. After a series of stunningly great years, the Dow Jones Wilshire REIT Index lost 17.6 percent in 2007 and another 39.2 percent in 2008. 

 

Top 10 questions to prepare for your financial future
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December 05, 2007

At our workshops, we do our best to present some of the finest investing material you’ll find anywhere. But sometimes, one-on-one help is really what is needed.

Superior diversification on a shoestring budget
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November 08, 2007
Proper asset diversification makes more difference than anything else investors can do. But it's a daunting task when you're just starting out with little money. In this article Paul Merriman describes a step-by-step plan for doing it right. Editor's note: This article, first published in 2002, was updated in January 2008.

Should you pay off your mortgage, or not?
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November 07, 2007
Good news! You have just had an unexpected windfall of $300,000, exactly the amount you still owe on your mortgage. Do you know what you would do? Would you rush to pay off your mortgage with your new-found cash, or would you keep your mortgage and invest the cash?

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