Diversification is one simple way to reduce risk. A well-diversified portfolio among various asset classes tend to perform well over the long run. Another reason why diversification is necessary because market leadership changes over time. A few years ago we discussed this topic in my post titled The Largest 10 US Stocks at the Start …
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Allocating assets among various sectors is one way to implement the diversification strategy. This is because the sector that earns the best returns in one year might end up turning the worst the following year. For example, the below chart shows the annual sector returns of the S&P 500 index from 2013 to 2022. We …
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One way to profit from the growth of the automotive sector is to invest in auto parts companies. This includes auto parts markets and retailers. Auto makers are not a great investment especially for the long-term due to many issues including legacy obligations and other factors. Auto parts makers and retailers benefit benefit during good …
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One of the key strategies for success with investing is the simple task of diversification. I have written many times in this blog that diversification is the easiest way to reduce risk and improve returns. Diversification over various asset classes is one way to implement diversification in a portfolio. The following chart shows the importance …
Continue reading ‘Why Tactical Asset Allocation is a Not a Smart Idea: Chart’ »
The Subway fast food chain is to be sold to Roark Capital for $9.6 billion according to a recent article in The Wall Street Journal. Subway is the eighth largest chain the US based on revenue in the US market in 2022. The top restaurant chain in terms of US revenue is McDonald’s (MCD). While …
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