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Entries for the ‘Portfolio Theory’ Category

Red Monday

This monday is one of the worst mondays since great depression. Stocks posted big losses in markets across much of the globe as investors absorbed bankruptcy plans at Lehman and Merrill Lynch’s forced sale to Bank of America for $50 billion in stock. And perhaps most ominously, American International Group Inc. is asking the Federal [...]

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The Power of Diversifying Your Investments

Diversification is the process of spreading your savings among several different asset classes that have different investment objectives and characteristics.This can help reduce risk and protect against the volatility of the market that can result from putting your entire savings into one asset class. Over time, a well-diversified investment mix will usually outperform an investment [...]

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Portfolio Diversification

What is the diversification of risk? It is the best way, how to avoid loss. For example: you have the oportunity to invest your money into sunglasses and umbrellas in summer. If it is sunny summer and you invest only into sunglasses, you are good. But there is still chance, that it will [...]

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