asset allocation

Is Asset Allocation Dead?

Asset allocation, the practice of spreading a portfolio across different investments to diversify risk, failed miserably in 2008 when almost all asset classes fell together. So is asset allocation dead? Yes, and no.


Beware Closed End Funds

You may be looking over the jaw-dropping discounts and dividend yields for closed-end funds and be tempted to jump in with both feet.

According to the Wall Street Journal, who quotes Morgan Stanley Research, the weighted average discount for the 650 U.S.-listed closed-end funds has widened from 6.2% to 15.6%.

take off

Flight to Safety

Continuing nervousness over banks drove stocks down and caused investors to flee to the relative safety of gold and US treasuries in trading on Wednesday, September 17.


Case Study: Anticipating Higher Interest Rates

To preserve wealth and generate some income, Jim moved a healthy portion of his portfolio to Long Term Treasury Bonds. However, the improving economy combined with the Fed’s massive monetary response to the financial crisis has Jim concerned about the potential for a rising interest rate environment within the next 12 to 18 months.