Two undeniable and highly visible characteristics of great coaches are their indelible courage and inner strength. All aspects and categories of the coaching profession embody an emotional collage of excitement, challenges, surging highs, deep lows, physically and mentally demanding work, and the constant anticipation for what lies ahead.
In fact, the Securities and Exchange Commission SEC enforces laws that are deeply rooted in asset allocation-based principles. Yet, where most investors and financial professionals and yes, even the SEC go wrong is they give little consideration to the reality that the risk spectrum can, from time to time, be turned on its head.
For a historical perspective, look no further than Senior Income Funds in As the name implies, these assets were meant to provide a high level of price stability as well as a steady stream of income for older folks.
And for 30 years they did just that. Sounds like a pretty safe investment for a year old widow, right? Unfortunately, was not kind to many investments… especially the mortgage-backed securities in Senior Income Funds.
They were some of the worst performing assets during the financial crisis. No matter where an investment falls on the risk spectrum, we believe that no investor is safe from catastrophe without a sufficient strategy to minimize losses.
Capital appreciation is a critical component that often gets overlooked in the hunt for yield. Even if you are a conservative investor, there are benefits to moving up the risk spectrum with a portion of your portfolio.
For starters, growth stocks can offset the negative effects that rising interest rates and inflation might have on an income-oriented portfolio. Second, the tax rates on long-term capital gains are lower than those of ordinary income. Thus, it often makes more sense tax wise to cash in on the appreciation of your shares of growth stock that you have owned for at least a year to generate cash flow than it does to receive those dividends and interest payments coming from your bonds, preferred shares and other income producers.
Keeping your portfolio concentrated at the low end of the risk spectrum carries risks much the same as concentrating at the high end does. Diversification across income and growth can provide a hedge against some of those risks.
If one allocates assets according to Modern Portfolio Theory MPTeach component of a portfolio should have different levels of risk and return. These differences will cause each component to behave differently over time; hopefully, one is creating efficiency where risk is minimized and return is maximized.
Although this theory is indeed just that — a theory — it does have some well-reasoned assumptions. Obviously, investors prefer to maximize return while minimizing risk.
Yet, there are a couple of indirect assumptions that MPT makes which are less obvious. In fact, those indirect assumptions may be downright counterintuitive to logic.
By definition, MPT relies on the fact that a proper asset allocation will, and should, be made up of both winning and losing investments. This is how volatility is theoretically minimized.This is another decision: to stay with the moment and live in pure reality and not allow myself to lose sight of my needs.
In essence, my truth is this decision and the commitment to myself. Photo. Music, Film, TV and Political News Coverage. According to the Bible, God killed or authorized the killings of up to 25 million people. This is the God of which Jesus was an integral part. Counting the Days While My Mind Slips Away: A Story of Perseverance and Hope [Ben Utecht, Mark Tabb] on kaja-net.com *FREE* shipping on qualifying offers.
After five major concussions, NFL tight-end Ben Utecht of the Indianapolis Colts and Cincinnati Bengals is losing his memories. This is his powerful and emotional love letter to his wife and daughters—whom he someday may not recognize—and Reviews: JDL Football Division 10 Sharks- 34 likes.
Hello team. I have posted game photos for you to share. Coach Axel. Without losing sight of our ultimate goal. The essence of sports is in striving to win— It’s not where you finish. It’s how you begin. "Ask Vic" will publish on Monday, Wednesday and Friday during the football season. Stephen from Jacksonville, FL Vic, you’re well aware the good people of Jacksonville don’t much care for that professional football team from Nashville, and a win this week would be as meaningful as beating the defending AFC-champion New England Patriots last week.