More From Heather Pelant
Why Minimum Volatility Funds Have Outperformed
Minimum volatility funds have outperformed broader markets in the long term. By limiting the downside during the troughs of a volatile market, the minimum volatility index is better able to capitalize on rebounds.
Don’t Panic when Financial News Headlines Jump Out at You
Don’t panic when financial news headlines jump out at you. If you’re ready to remain invested for the long term, you could see better returns in equities compared to other asset classes.
Importance of Owning Both Defensive and Cyclical Stocks
Cyclical industries like technology and financials tend to perform differently from defensive industries like utilities and consumer staples.
Own Bonds across Credit Quality to Diversify Your Portfolio
Adding bonds across credit classes helps diversify your bond portfolio. The weight of each category depends on your risk appetite and the business cycle.
Stocks and Bonds Aren’t Enough for an Optimal Portfolio
Historically, stocks and bonds have moved in opposite directions. The correlation shows to what extent one asset moves in tandem with the other.
Higher Volatility: You Need to Rethink Your Portfolio Strategy
Higher volatility calls for you to rethink your strategy. After being calm for most of 2014, both bonds (AGG)(BND) and stocks have experienced volatility this year.
Why Bonds Deserve to Stay in Your Portfolio
The correlation between equities and high yield bonds is quite high, at +0.7. This is because both equities and high yield bonds depend on the well-being of the economy.
Why Holding Cash Is Not a Good Strategy in the Long Run
Holding cash is not a good strategy in the long run, as inflation reduces your purchasing power.
Why You Should Sit Tight through the Market Volatility
The S&P 500 Index (SPY) (VOO) has grown ~4.1 times, or 309.1%, over the last 20 years.
Why Market Volatility Is the New Normal
Market volatility is the new normal as the stronger dollar, high valuations, and poor economic data act as headwinds.
Why return expectations are changing around the world
The return expectations we have for our investments aren’t what they used to be. Continued market ups and downs have pushed many of us out of the market and into cash.
Must-know: Are you sitting on too much cash?
Are you sitting in too much cash? Heather Pelant discusses an all-too-common investing phenomenon. What is your relationship with cash?