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[The Simple Dollar] The Simple Dollar » Some Thoughts on Investing in Dividend-Bearing ...: I was reading that, in order to achieve good diversification from a stock portfolio, an investor must hold at least 30-35 different stocks. Keeping track and following 30-35 good picks seems tedious for passive investing when ETFs and mutual funds can expose you to the same kind of growth and dividend return.

[Untitled] Using Best Forex System Trading Practices To Optimize Your Money ...: to attain significant investments returns from forex trading. The best practice could help you hold on and live up to the full and ideal potential of currency investing.

[Blog rabodirect] RaboDirect Banking Blog - Information on your Investments and Finance: Christophe: The first thing to mention here is that sustainable investing is still a fairly nascent investment philosophy and there is little empirical analysis that’s been done on its performance versus other investment styles in different market conditions. Bear in mind that most empirical research in finance generally uses 30+ years of stock returns, whereas the longest track records for sustainable funds barely go 10 years back.

[4u-2 Articles] The 10 Green Industries for your Ethical Investment Portfolio | 4u ...: Ethical investing, for some traders, means investing in industries that market affirmative environmental packages, sustainable expansion, and good company governance. Numerous men and women even now feel that traders in green industries could eliminate their income in the prolonged operate since it is hard to maximise monetary return when taking social ethics into standpoint.

[The Dividend Guy Blog] DRIP Question From a Reader: You should rather take your dividend payouts and accumulate them to buy different stocks. Therefore, in William's case, the question is not really if a DRIP is good for him or not but rather if he has other investment options.

[Investment] Socially Responsible Investing for Idiots: The day-to-day ups and downs of the market receive the media attention, but the daily, quarterly, or even yearly returns are largely irrelevant in constructing an individual’s portfolio whose objectives are long-range.  What you want to look for are funds that perform well over the long run within their particular sector, as compared to the appropriate benchmark indices. Various areas of the economy are always moving up and down and sideways, and so far no one has ever been able to know ahead of time what the pattern will be.

[Smilie Signs News] Socially Responsible Investing | Smilie Signs News: Companies gеt thеіr money аt initial public offering.If уου bυу index funds іt іѕ rіght thаt ѕοmе οf уουr assets wіll bе invested іn oil companies bυt οnlу аѕ a topic οf index tracking nοt bесаυѕе thе fund manager hаѕ a penchant fοr oil.It’s really hard tο separate thе nasty frοm thе nice. Microsoft sells a lot οf software tο Exxon.

[ETF DAILY NEWS] Tactical Allocation Group achieves GIPS verification | ETF DAILY NEWS: The five year track record of TAG’s ETF portfolios underscores the firm’s reputation as an innovator of global tactical investment management using ETFs and helps set the firm apart from its peers, many of which have only just begun to administer ETF-based portfolios.

[Buzuku Consulting | Free Financial Advice] A New-Age Investment Philosophy | Buzuku Consulting | Free ...: Correlations between investment returns are not static and in reality change frequently.  The principle of diversification is based on the concept of correlations between investment returns.  That is if, based on historical data, IBM stock moves up in price when Wal-Mart stock moves down in price, and I believe this relationship will hold in the future, buying both IBM and Wal-Mart stock will provide diversification to my portfolio because their prices don’t move together (hence the value of my portfolio is less volatile).  Now, I don’t want them to move exaclty the opposite in price so that I don’t earn any positive return over time.  What I want is for both of them to have a positive expected return and still move in different ways to offset each other so that over time I have a positive return but less volatility.  The problem is, the correlation between IBM and Wal-Mart that I established using historical data may not hold in the future, and in fact is unlikely to hold.  So, I think I’m getting diversification but I’m not, and when a major market event happens that crushes the price of IBM stock, it may also crush the price of Wal-Mart stock and I’m left exactly where I would have been without Wal-Mart.  What’s important to know is that correlations are much more persistent on an asset class level, and to a lesser extent on a sector level, than on an individual stock or bond level.  That is, the correlation between the stock and bond markets or the correlation between the general Information Technology (“IT”) sector and the general Retail sector is more stable than the correlation between IBM and Wal-Mart stocks.  But, just like we saw in the financial crisis of late 2008, large market events tend to take all sectors of the equity market down in price, not just a few sectors.  So, we shouldn’t be overly dependent on the correlation between equity (stock) sectors, and are much better off diversifying by owning various asset classes (i.e. stocks, bonds, commodities, etc.).

[Information Arbitrage] Information Arbitrage - The biggest challenge in VC investing ...: At this point our main objectives are (a) protecting our LPs capital by not seeking to turn over more cards, the cost of which is generally value destroying to the partnership, and (b) protecting our reputation by being extremely clear with management about what went wrong and helping them to achieve their objectives, whether it’s continuing to move forward without us or seeking a graceful exit. These situations suck but are part of the high-risk business of early-stage investing.

[Investment Books 411] Investment Books 411 » Blog Archive » A New-Age Investment Philosophy: Correlations between investment returns are not static and in reality change frequently.  The principle of diversification is based on the concept of correlations between investment returns.  That is if, based on historical data, IBM stock moves up in price when Wal-Mart stock moves down in price, and I believe this relationship will hold in the future, buying both IBM and Wal-Mart stock will provide diversification to my portfolio because their prices don’t move together (hence the value of my portfolio is less volatile).  Now, I don’t want them to move exaclty the opposite in price so that I don’t earn any positive return over time.  What I want is for both of them to have a positive expected return and still move in different ways to offset each other so that over time I have a positive return but less volatility.  The problem is, the correlation between IBM and Wal-Mart that I established using historical data may not hold in the future, and in fact is unlikely to hold.  So, I think I’m getting diversification but I’m not, and when a major market event happens that crushes the price of IBM stock, it may also crush the price of Wal-Mart stock and I’m left exactly where I would have been without Wal-Mart.  What’s important to know is that correlations are much more persistent on an asset class level, and to a lesser extent on a sector level, than on an individual stock or bond level.  That is, the correlation between the stock and bond markets or the correlation between the general Information Technology (“IT”) sector and the general Retail sector is more stable than the correlation between IBM and Wal-Mart stocks.  But, just like we saw in the financial crisis of late 2008, large market events tend to take all sectors of the equity market down in price, not just a few sectors.  So, we shouldn’t be overly dependent on the correlation between equity (stock) sectors, and are much better off diversifying by owning various asset classes (i.e. stocks, bonds, commodities, etc.).

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