If you are trying to diversify a portfolio by sector, exposure to certain sectors may have more effect than others. This examination of correlations between SPDR Sector Select funds over the last 10 years shows that certain sectors do, in fact, have less correlation than others. Continue reading “Which Stock Sector Does the Most to Diversify a Portfolio?”
Author: Douglass Gaking
Doug is a certified business educator and music educator. He currently teaches businesses and computer science at Avon High School in Avon, Indiana and is the director of IGNITE Winter Percussion in Shelby County, Indiana. He was a band and choir director for 13 years and continues to judge and clinic with ensembles. He performs drums and percussion, composes and arranges music for concert band, marching band, and percussion ensemble, and teaches and writes about business, finance, and economics. He has a B.M. in Music Education from Butler University and an M.B.A. in Economics from Southern New Hampshire University. He is also an avid reader and a lover of art, history, science, and nature, especially birds and other wildlife.
An Example of the Importance of Reallocation
When is the last time your checked your investment allocations? If it has been a few years, a lot has changed in the market. Stocks have reached record highs within the last few months. These gains have probably provided you with a great return. However, they can also set a portfolio’s allocations off-balance. Continue reading “An Example of the Importance of Reallocation”
9 Financial Questions You Should Be Asking Yourself
There are 9 fundamental questions that everyone from about age 15 to age 115 should be asking themselves about their finances. Once we have asked them, and hopefully answered them, we need to keep checking up on them every few months to make sure we are staying on track. My goal for this blog is to help you ask the right questions, and hopefully find the right answers.
Notice that I said “help you find.” No two people have the same exact answers to all of the questions below, so no one financial advisor can have the perfect solution for you. It is something you have to find for yourself, through studying good sources of information, and sometimes through some trial and error. There are a lot of people out there who have plans for your money that aren’t on track with your values, goals, and risk tolerances, so you have to take responsibility for your money. Don’t leave these choices up to anyone but yourself.
I hope that I can help filter out some of the noise and provide some helpful ideas as you do that. That is my goal for this blog, which will start with posts that focus on these 9 questions. Without further ado, here are the 9 financial questions you should be asking yourself:
- What are my values?
- What are my long term goals?
- What intermediate- and short-term goals should I have?
- What is my net worth?
- What is my risk tolerance?
- What can I do to improve my net worth and work toward goals?
- How should I adjust my current investment allocations to better meet my goals and risk tolerances?
- How should I allocate future investments to better meet my goals and risk tolerances?
- What can I do to make sure I stay loyal to my values and goals?
Econ4All 