When the market goes up and down like this, all we hear about is « patience » and « diversification ». While it is sometimes a bit annoying to hear the same broken record over and over again, this is sound advice. If you are too concentrated in a specific sector (Techno in the 90’s and financials in 2008 just to name two examples!) you will suffer a lot more than other investors. Besides fixed income and equities or sectorial and geographic diversification, are there any …
Review of my Asset Allocation
Last week, My Own Advisor, a regular reader, asked me about my asset allocation strategy. It is true that it has been a while since I have discussed asset allocation on this blog. This is why I decided to take a look at my current dividend holdings and comment on them. Here is my current portfolio: And here’s my asset allocation per sector: As you can see, there is a massive (too massive!) part of my portfolio invested in the financial industry. If you are …
Dividend Investing With Less Than $1,000; The Importance of Asset Allocation
As a financial planner, I keep talking to my clients about the importance of asset allocation in a portfolio. I think it is very important that all investors understand the benefit of having a well diversified portfolio. Why should you consider asset allocation in a dividend portfolio? Because the stock market reacts like a psychopath… I’ll get back to this later but first: How can you diversify with less than $1,000 to invest? Some argued in the first post of this series that you …
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Why Asset Allocation is Important to my Dividend Portfolio (and my current allocation)
It has been a long time since I reported on my asset allocation. If you have been following the blog for some time now, then you know that I believe that the right asset allocation is important for a dividend portfolio - any portfolio for that matter. Among the academic reasons for a sound asset allocation that covers the right balance between risk and reward which leads to the right level of volatility for a portfolio which also helps determine return, there are other reasons I like asset …
How You Can Plan for the Unplannable with Dividends
The recent volcanic activity in Iceland really brought home the impact of things way beyond our control. As the airlines were forced to shut down air traffic throughout most of Europe the impacts were huge economically, socially, and even psychologically. If you had to do any traveling during that time (like I did), you saw just how beyond our control things really were. From a dividend portfolio perspective, this really highlighted the importance a couple of basic portfolio planning …
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Why Most People Fail at Investing
Investing is hard right? There is so much to learn and every time you turn around it seems like there is a better way to manage your portfolio. Add on top of that the desire to buy high quality dividend stocks using stock market research tactics and it feels like you are never done. I suspect that most people fail at investing. They make very silly mistakes that lead them to sub-par performance and a portfolio that constantly trails behind the overall returns of the market. The trick is …
