Stocks vs. High Yield Bonds: Which is Better?

High yield or “junk” bonds actually move a lot like stocks with one big difference – they pay a big premium. Learn why a high yield bond portfolio can low volatility and provide better returns than stocks.

Building a Diversified, Low-Cost, High-Performance ETF Portfolio

In this article you will learn how to build a diversified portfolio of multiple asset classes without having to pay a manager The stock indexes including the S&P 500 and the Dow Jones Industrial Average have been rising in 2009 but does this mean investors should be all in stock? According to the most recent … Continued

How Does an IPO Work?

An IPO or initial public offering is a lot like a pyramid scheme that provides a lot of cash to investment bankers and company management but investors can get burned if they aren’t careful.

Stimulus or Broken Window? Beware Diversification Fallacies

By exploring the parable of the broken window we can better understand the real impact of a stimulus package. We can also better understand diversification risks investors face, but often ignore.

Market Capitalization and Diversification

Learn the difference between large, small, mid, and micro-cap stocks and how they can impact a well-diversified portfolio.

Diversification and Indexing

Diversification is one of the only no-cost benefits available to investors. Although diversification isn’t difficult, it does require some preparation and planning. But the effort is well worth it, and not diversifying can be devastating. You’ll enjoy a less volatile equity curve, smooth account growth and smaller draw downs than otherwise possible. Surprisingly, self-directed investors … Continued