by KenFaulkenberry | Apr 9, 2013 | Portfolio Management
Asset correlation is a measurement of the relationship between two or more assets and their dependency. This makes it an important part of asset allocation because the goal is to combine assets with a low correlation.
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by KenFaulkenberry | Jan 27, 2013 | Investment Basics
The words investment probability theory might initially cause your eyes to glaze over with boredom. But I believe I can make it practical for you and we can learn important lessons from a basic understanding of investment probability.
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by KenFaulkenberry | Nov 4, 2012 | Investment Basics
Dividend growth investing combines the benefits of compounding dividends, compounding the growth of dividends per share, and the increasing value of the shares themselves. The key principle is to take advantage of the power of exponential growth by reinvesting growing dividends over long periods of time. Interest compounding is a powerful financial concept, but dividend growth compounding multiplies the benefits of exponential growth.
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by KenFaulkenberry | Sep 30, 2012 | Risk
The TED Spread is the difference between the 3 month T-bill rate and the 3 month London Inter Bank Offered Rate (LIBOR). It is important because it is an indicator of perceived economic risk, monetary liquidity, and perceived credit risk of the global financial banking system.
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by KenFaulkenberry | Sep 25, 2012 | Investment Basics
Exponential growth is sometimes described as the “miracle of compounding” because of the extraordinary explosion that takes place over time. Investors can use double time and the Rule of 72 to estimate the power of exponential growth to meet their retirement goals. Use this important financial concept to meet your investment goals!
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