Asset Allocation

During the building of my dividend based investment portfolio, I have strived to ensure that I have a well-researched and sound asset allocation. With that complete, the next step of effective portfolio management is the act of rebalancing. In this post, I am going to explain what rebalancing is and how I like to use it in my own personal portfolio. Rebalancing is the act of boosting underweight asset classes and trimming overweight asset classes in a portfolio. It's primary purpose is …

Continue Reading about Rebalancing as a Key Portfolio Tactic

In this post I am going to provide a list of websites that provide investors with suggestions for a well-diversified portfolio. However, before I present the list I need to temper anyone's desire to simply take these suggested portfolios and implement them. Not one of these portfolios is a good fit for everyone, even if the sites they come from suggest that they are! More importantly, if you are going to be a do-it-yourself dividend investor, then it is crucial that you understand why each and …

Continue Reading about Using Suggested Portfolios to Build Your Portfolio

"If I am not back in 5 minutes....just wait longer" - Jim Carrey, Ace Ventura. If you have seen this movie as many times as I have then you can picture Ace Ventura saying this. The quote immediately came to mind as I was searching around the web for some probability statistics on earning a positive return in the stock market. I should have known that what I would find was work done by William Bernstein given his intense analytical and mathematical abilities. Have a look at the chart below …

Continue Reading about If Your Portfolio Is Down, Just Wait Longer

As an active investor who buys individual securities, I need to make sure I am very diversified to minimize individual security risk. I have built a strong asset allocation model based on a great deal of research. I still have some work to do to meet my target allocations. However, as my recent portfolio performance has shown I am heavily weighted in financial stocks and will need to shortly turn my attention to my sector allocation. According to Investopedia, here is the definition of a …

Continue Reading about Sector Allocation of my Portfolio