Investing Newsletter - Jul 2013
The division of one’s investment portfolio between stocks, bonds, cash and other essay writing services asset classes is one of the most important decisions an investor has to make.
Once this decision is made it is absolutely critical not to make an emotional decision to change it due to fear or greed.
Asset class investment returns historically revert to the mean.
Investors often chase outperforming investments and flee underperforming ones.
US Stocks significantly outperformed international developed and international emerging stocks as well as bonds and other more conservative hybrid investments.
Investors may be tempted to sell underperforming investments and buy US stocks.
By sticking to a disciplined rebalancing strategy, investors can resist the temptation to chase top performing investments and flee underperforming ones.
High quality first trust deed investments reduce interest rate risk and increase yield relative to high quality US bonds.
The correction in emerging market bonds presents an opportunity to extend maturities and obtain higher yields.