Strategies
Quiz: Determine Your Investment Risk Profile
When strategizing to achieve their financial goals, investors need to determine the appropriate mix of investment alternatives that can provide the desired level of return while keeping risk at a tolerable level, given their risk profile. Investment risk describes the chance that the actual return they will receive from an investment will be different [...]
Choosing a Stock Investment Strategy for You
Over the last two decades, the average person’s interest and participation in stock market investing has skyrocketed. Perhaps people have more clearly seen the power in owning stock and having a vested interest in the success or failure of a company of their choosing. While this type of investing was once seen as [...]
When and Why to Invest in Cyclical Stocks
A cyclical stock is a stock that tends to rise during good economic times and fall when the economy slows down. The performance of these stocks, and usually the stocks of its competitors, will vary depending on the phase of the business cycle. Identifying cyclical stocks is not difficult as the industries they [...]
Investing Within Your Circle of Competence
Investing within your circle of competence is the belief that people should choose a single area of focus for investments. The area of choice should be one in which they have developed a familiarity far above that of an average investor. The concept was made popular by the great investor Warren Buffett, who [...]
The Benefits and Risks of International Investing
International investing is about putting money into assets outside the United States. International markets can offer greater opportunities for return than U.S.-based investing, simply because these opportunities are less-widely recognized. Mutual funds, exchange-traded funds, U.S.-traded foreign stocks, and American Depositary Receipts are some of the vehicles investors may consider when looking at foreign investments. [...]
Choosing a Stock Market Investing Strategy
For investors and anyone interested in the accumulation of savings and wealth, few topics are more interesting than stock market investing and developing a strategy for success. Over the long-term, stocks have proven to provide the highest potential returns with the opportunity for both capital appreciation and income (through dividends). On the downside, [...]
How Much Investment Risk Can I Handle?
Determining risk tolerance should be one of the first parts of an investing and asset allocation strategy. Without an understanding of the level of risk you can tolerate, it is difficult to know if you are building a portfolio that is consistent with your financial goals. Most investment advisors seek first to classify [...]
Investing in Real Estate Investment Trusts (REITs)
A Real Estate Investment Trust (REIT) is an investment vehicle where a corporation is formed to investment in various types of real estate such as office buildings, shopping centers, hotels, or other types of real estate related assets. REITs enable their investors to directly participate in the ownership or funding of real estate ventures [...]
Sector Investing for Portfolio Balance
Stock investors often classify stocks by the type of business in which the company engages. By grouping like companies in this way, investors are able to more easily make comparisons when analyzing potential stock investments. The most common segmenting identifies a stock as either defensive or cyclical and further segments companies based on [...]
Factors to Consider When Picking Stocks for Investment
When considering any type of stock investment, the investor needs to understand the potential future performance of the company and the factors than can influence that performance. Listed below are the three primary factors that can impact how well a company does in both the near and longer-term.
The Overall Health of the Economy: The [...]
