You face a risk for which the market does not compensate you, that can not be easily reduced through diversification.
What do we mean by risk<br>Investors and savers face risk no matter what, whether they are completely invested in the market or prefer to keep cash in the bank or under a mattress. It is important to understand how to categorize these different risks and understand how they will affect your retirement.<br>Unsystematic risks are specific risks, meaning they are risks that are specific to a company or industry and can be minimized through diversification. Usually, unsystematic risks may affect one type…
Financial advisors and wealth management firms use a variety of tools based on modern portfolio theory to quantify investment risk. However, along with the efficient frontier, statistical measures and methods including value at risk (VaR) and capital asset pricing model (CAPM) can all be used to measure risk.
Recent studies have shown that women outperform men as investors, but in order to become better investors, women need the confidence to take more risks.
What separates the winners and losers when it comes to investing? Human behavior -- and a plan
You can't control market returns. You're better off focusing on the things you can control: how much you save and spend, how you divvy up your savings between stocks and bonds and how much of your return you give up to investment expenses.
How much investment risk can you handle? Manisha Thakor on the factors that go into determining risk tolerance.
The questions financial advisers ask clients to get at the answer actually measure something completely different—often leading to misguided investment strategies.
Clients and prospects can sometimes get wacky ideas about where to put their money, but these are some of the craziest that advisers have heard.
The Federal Reserve just raised interest rates again. How might your investments be affected?
Could an investment method that encourages us to use as little discernment as possible end up being too good to be true?
For the three-month period during which I essentially ignored my investments, the Practical Investing portfolio rose 10%.
Ant Financial's investment platform has a neat solution liquidity problems for investors: a peer-to-peer, secondary marketplace.
In every investment there is always some form of risk. It can range from interest rate risk, business risk, liquidity risk or market risk. To measure the amount of risk in an investment there are f…
Periodic rebalancing is generally a good way to keep your investing strategy on track and to prevent your portfolio from becoming too risky during market surges or too conservative after big market setbacks.
Investors mistakenly believe that dividend-paying stocks make better investments. Dividend stocks are usually on the value end of the spectrum, which does make
Got a billion-dollar idea? You need million-dollar investors.
Performing a strong analysis of your potential investments is what will make your investing strategy effective, accurate, actionable and repeatable.
Would you borrow money in order to invest it? Investment trust managers do just that, reinvesting debt with the aim of boosting returns to shareholders
FUTURE PROOF: Too-frequent portfolio monitoring can lead investors to tinker with their portfolios' unnecessarily, but when you do review your holdings follow these rules