Modern Portfolio Theory – Why Should You Care?

The theory is that, using relationships between risk and return such as alpha and beta, and defining risk as the standard deviation of return, an “efficient frontier” for investing can be identified and exploited for maximum gain at a given amount of risk. Much of Modern Portfolio Theory is now questioned. So why should you care?

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3 Types of Investors – Which Type Are You?

I see 3 main types of investors today; each with their own characteristics and results. One lets their emotions cause them to make really bad investment decisions. The second voluntarily decides the best they can achieve is average performance. The third attempts to control their emotions and increase allocations when asset valuations are bargains and decrease allocations when asset valuations are high.

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