diversification

It is hard to make quantifiable observations without having a strong anchor point. Beneath the surface of a fresh market all-time high, the foundation is looking increasingly shaky. Market breadth, a measure of stocks participating in a rally, has slipped below the level it had in 2008 – a year...

Home Depot Inc. (NYSE:HD) highlighted its supply chain diversification strategy during its earnings call, estimating “limited” tariff impact as senior economist Mohamed El Erian hailed its “China plus many” approach. What Happened: Despite reporting a mixed quarter, the Home...

The rise of meme stocks in recent years has led to more investing education — and some investors realizing they need to diversify. What Happened: Benzinga founder and Chairman Jason Raznick shared his take on how meme stocks have changed the markets during an interview on the Schwab Networks' "...

The benefits of diversification have been known for over half a century. In the early 1950s, Harry Markowitz demonstrated that there exists an “optimal” portfolio which has the highest investment return for a given level of risk. For his work, which created the field of modern portfolio...

Investing can seem like a complicated puzzle, especially for beginners. But don't worry; we can learn valuable lessons from seasoned investors like Philip Fisher, author of Common Stocks, Uncommon Profits.   Fisher was a renowned American stock investor known for his insightful advice on...

There's no denying it. The stock market is the greatest engine of passive wealth creation in the world. But that doesn't mean it's a smooth ride. If you've ever found yourself: Wide-eyed as NVIDIA Corp (NASDAQ: NVDA) soars and Walgreens Boots Alliance Inc (...

Of all the truisms about investing that Warren Buffett has come out with over the years, perhaps the most important one for investors to understand is this: “Risk comes from not knowing what you’re doing.” Most investors, including many professionals, are simply unable or...

When it comes time to picking your investments, it’s easy to be overwhelmed. There are thousands of publicly traded companies in the US and so many sectors to choose from. Index funds have made it easy to get cheap diversification. Buy a fund at low cost that gives me broad exposure to the...

Some elements of this story were previously reported by Benzinga, and it has been updated. Wouldn’t it be nice to know how to use data to determine the perfect investment? In 1952, Harry Markowitz published an article titled “Portfolio Selection.” Prior to Markowitz, examination...

Investing in an exchange-traded fund that invests in large cap dividend stocks can be a great way to secure passive income. Additionally, investing in such an ETF will allow diversification of a portfolio so it becomes more immune to unsystematic risk. This type of risk is...

Much has been written about the strength of the U.S. markets in 2019. U.S. large-cap stocks rose 31.5%, their best year since 2013.  That’s a great year for domestic investors, but I fear it causes some to miss one of the key points of investing, which is that markets move in cycles....

The overwhelming transparency of exchange-traded funds (ETFs) allows for enhanced research capabilities of the underlying holdings. This can be particularly useful when trying to pinpoint a diversified fund with outsized exposure to a particular stock. For instance, in looking for a list of the...

Investing in fixed-income using ETFs has evolved to include many sophisticated strategies. Investors can now choose among a variety of duration, sector, credit and global options. In addition, ETF providers are now focusing their efforts on target maturity funds to mimic the defined maturity...

Volatility has returned in 2014 after consecutive months of relative calm that has many investors looking for ways to profit on the downside or hedge existing positions.  Advanced traders may be seeking out options strategies or shorting individual stocks to great effect, but another...