Chapter 8 – Understanding Risk

Chapter 8 – Understanding Risk

Risk is one of the most important components of all kinds of investing – but risk can also be a complicated issue. There are many measures and definitions of risk: volatility – the up and down movement of the market – is just one measure. Traditional...
Chapter 6 – Why is diversification important?

Chapter 6 – Why is diversification important?

The philosophy behind portfolio diversification is that if one investment performs poorly, you will always have others that will, ideally, not be performing badly at the same time. This allows your varied investments to act as counterbalance to one another. The “asset...
Chapter 6 – Why is diversification important?

Chapter 6 – Why is diversification important?

The philosophy behind portfolio diversification is that if one investment performs poorly, you will always have others that will, ideally, not be performing badly at the same time. This allows your varied investments to act as counterbalance to one another. The...