Posts Tagged ‘risk management’
Chapter 13 – Monitoring Your Investments
Once you have constructed your portfolio you will need to monitor it to make sure it is performing as you had hoped and that you are on track to achieve your investment goals. A financial adviser will, or can, review your investments at your annual meeting. For those that have taken the self-managed route, these…
Read MoreChapter 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 investors only worry about volatility when shares are falling.…
Read MoreChapter 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 allocation” or in other words, how you divide your money between shares, cash,…
Read MoreChapter 2 – Risks and its Implications
To earn a better rate of return than you would expect from a savings account, you need to accept more risk. That means getting comfortable with the fact that your investments will/can go down in value some of the time. The long-term direction of the stock market is up, but it doesn’t rise in a…
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