Index To Portfolio Construction Content

When it comes to prudent investing the science is very clear. In this area you will find a plethora of information concerning an academic and scientific approach to portfolio allocation and construction. There are number of subtleties that can often throw people off track, it's important you get educated about the realities of what the science teaches concerning how to pick a different investments for a well diversified global based portfolio.

Risk: Just the Facts Ma’am!

How much risk is in your portfolio? Seems like a pretty straight forward question. Well…do you know how much risk you’re taking on or are you just taking a ride on the “Trust Express”

You’d think this is something most investors would be demanding to know. Yes, there is a mathematical formula that measures how much risk is in your portfolio. It’s called standard deviation and it measures how volatile your particular portfolio is. It absolutely blows my mind that there is so little talked about this vital measurement in the investment world. Most people have never even heard about it.

Rational…Lies! Shell of Truth Stuffed With Emotion

Global broad based diversification. Investors make big mistakes when markets are volatile.

Portfolio Construction: Navigating the Fog of Investing

Excerpts from Navigating the Fog of Investing. The world finance is lauded with manufactured perceptions and techniques designed to create transactions. The revenue created from transactions, that is stocks and mutual funds being bought and sold on a rampant daily basis is staggering for when you look at all the major brokerage firms. This shear […]

“For the Record” interview with Paul Nichols

Jed Donahue host of “For the Record” interviews Paul concerning financial literacy and the lack of education we see in America.

Everyone Loves Market Volatility ​!!! When it’s up?

A friend and fellow Investor Coach from NJ shared a story of a recent trip.

While in Europe with his wife a earthquake and then hurricane hit the East Coast and they couldn’t get home. All flights from anywhere in Ireland to anywhere in the United States were canceled, So, he bought a newspaper, The Irish Times to be specific, and a cup of coffee, to settle down for a long wait.

While browsing through the paper, an article jumped out at him entitled “Investor ‘prediction addiction’ now most relevant.” He shared that he was pleasantly surprised at the positive portrayal of our Investment Philosophy that he found in the article.

Who Wins with Market Timing?

  Market timing a concept that has been excepted for decades as a strategy for managing different investments held in ones portfolio or overall of estate. The idea is that one can proactively stay ahead of the masses and determine what types of investments are best to own based on a current social, political, and […]

Stock Picking…Folly or Fact

Stock picking, market timing and track record investing are techniques devised to outwit the stock market. Can the market be beat?    

Portfolio Construction and Market Portfolio Theory

  Modern portfolio theory was brought to us by Henry Markowitz winner of the Nobel Prize in Economic, 1990 along with Merton Miller and Williams Sharp. Modern portfolio theory is the basis of sound academic investing today. The concept of  dissimilar price movement to manage volitity was first communicated mathematically by Harry Markowitz back in the […]

Market Update August 2011

It's Your Money
It's Your Money
Market Update August 2011
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This week, Paul Nichols, the president of Financial Abundance gives a market update as of 8/8/2011.

Financial Abundance, Inc is a Registered Investment Advisory Firm based in Centre County with offices throughout Pennsylvania.

Visit Financial Abundance’s website and send Paul a note about the show or a question that you would like to have answered under the “Ask the Coach” link.

http://www.FinancialAbundanceInc.com or 866-867-5745

Home Bias Investing

Whenever I review a prospective client’s investment portfolio, I rarely see one that is truly globally diversified. The biggest problem I see is that most people are woefully over-weighted in US stocks. To make matters even worse, its usually exposure to just large US company stocks.

Their advisors might have placed them into General Motors, GE, Verizon, Proctor & Gamble, Johnson & Johnson, and similar large stocks.

The problem here is that the investor thinks he or she is properly diversified, but in reality, they have several sectors representing only two asset classes. So when one of the stocks rises, generally they all rise. But when one drops in price, more often then not they all drop. The result: unintentional wild swings in account values.

Target Funds & 401(k) Plans

A number of years ago, employers began to include Target Date Funds as choices in their 401(k) plans.

The idea behind these investments, sometimes called “Lifecycle Funds,” is to help you to easily allocate your retirement plan contributions. Essentially, you would select a Target Date Fund that was “dated” close to the year you planned to retire, and, often, not include any of the other investment choices available in your company’s plan. For example, if you want to retire in 2015, you might select “Target Date Fund – 2015.” If you thought you would begin to enjoy your Golden Years in 2020, then you might choose “Target Date Fund – 2020.

Market Update March 2011

It's Your Money
It's Your Money
Market Update March 2011
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This week, Paul Nichols, the president of Financial Abundance gives a market update as of 3-17-11.

Financial Abundance, Inc is a Registered Investment Advisor based in Centre County with offices throughout Pennsylvania.

Visit Financial Abundance’s website and send Paul a note about the show or a question that you would like to have answered under the “Ask the Coach” link.

http://www.FinancialAbundanceInc.com or 866-867-5745

Thank you

Portfolio Construction: The Mideast Wants Free Markets

A client called and asked somewhat nervously if, with all the turmoil going on in Northern Africa, were we invested in Egypt and Libya? The implication was that if we were invested in one of these two countries, should we sell? Or, if we were not invested in one of these countries, should we buy?

What’s Your Investment Philosophy?

It's Your Money
It's Your Money
What's Your Investment Philosophy?
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This week, Paul Nichols, the president of Financial Abundance gives a market update as of 3-4-11 and talks about our investment philosophy. Have you purchased, “The Investment Answer” yet? We’ve talked about this great investing primer over the past few weeks and continue to promote it. Pick up a copy, you won’t regret it.

Financial Abundance, Inc is a Registered Investment Advisor based in Centre County with offices throughout Pennsylvania.

Visit Financial Abundance’s website and send Paul a note about the show or a question that you would like to have answered under the “Ask the Coach” link.

http://www.FinancialAbundanceInc.com or 866-867-5745

Thank you

Interview with Dan Goldie, Author of The Investment Answer

It's Your Money
It's Your Money
Interview with Dan Goldie, Author of The Investment Answer
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This week, Paul Nichols, the president of Financial Abundance interviews the author of “The Investment Answer”, Dan Goldie. He and Dan sit down and discuss the reasons behind writing the book and what Dan hopes will come from the book being written and read by investors, both seasoned and those just starting out. After reading this book for yourself, pass it on to close friends and family! This is a must read for anyone who is serious about learning how to invest the right way.

Financial Abundance, Inc is a Registered Investment Advisor based in Centre County with offices throughout Pennsylvania.

Visit Financial Abundance’s website and send Paul a note about the show or a question that you would like to have answered under the “Ask the Coach” link.