Does International Diversification Work?

Diversification is an important factor to consider when investing in foreign stocks . An investor can diversify based on a specific theme or types of markets such as emerging, frontier,  developed, etc. It is better to diversify between different markets and then different countries within those markets.  It is not a wise idea to invest all the assets allocated for foreign stocks …

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Is a Crisis The Best Time to Invest ?

“The time to buy is when there’s blood in the streets.” – Baron Rothschild I came across a Bloomberg BusinessWeek article from June, 2012 discussing about finding hidden opportunities in Greece. Since the Greek equity market was decimated during the previous few years as a result of the Greek crisis and the ensuing recession, George Elliott of …

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Proof That Chasing Performance Does Not Work

One of the reasons most retail investors perform so poorly in stock investing is that they tend to chase performance. Investors always go with the hottest theme or stock that driving the markets at any given time. During the late 1990s it was tech stocks, energy and security stocks after the 9/11 attacks, banking and …

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Will BRICs Outperform U.S. Markets In This Decade?

Economist Jim O’Neill of Goldman Sachs coined the term “BRICs” in November 2001 to identify the core set of emerging markets at that time. These countries – Brazil, Russia, India and China – did not have many things in common other than all being emerging countries. For example, in terms of political systems Brazil and India follow democracy, …

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Why Invest in Investment Management Firms

Investment management firms manager assets for individuals, institutions, charities, pension funds and others. These firms provide a full range of services from asset management to wealth advisory to everything in between. Investment managers have strong business models and investment in their stocks are worth considering for the following reasons: Investment management firms have for the …

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