The power of diversification

“Holding a diversified portfolio of asset classes and investments means you don’t have to try to pick and choose the best performing section each year (which is impossible to do anyways).” – Ben Carlson @awealthofcommonsense

This chart is one of my favourite ways of demonstrating the importance of diversification for those who are thinking about retirement or who have already hung up their spurs.

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This is what you are up against…

A Bloomberg terminal is a fantastic piece of kit.

As well as providing split second information (there is even a feature that lets you track ships carrying commodities as they travel around the world) they also allow subscribers to connect with each other via instant messaging and chat rooms. Continue reading “This is what you are up against…”

Do your investments suffer from home country bias?

“I like what I know and I know what I like”

This in essence is home country bias, a phenomenon that can be seriously detrimental to investment performance.

A more precise definition of home country bias is that it occurs when investors concentrate their portfolios in shares and bonds from their home country at the expense of global diversification.

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