This year, the stock market is teaching new investors an important lesson, with many sectors losing value. Instead of hoping for the next big run-up, I will show you a diversified portfolio example ...

Shauna Croome was one of the earliest financial content contributors when Investopedia opened in 2002. She was fundamental in growing the site to become the leader in financial literacy. Shauna held ...

How can economic downturns affect your shares portfolio? Equities do the best during bull markets. A portfolio of equities is exposed to weakness in economic growth – when growth falls, employment ...

Forbes contributors publish independent expert analyses and insights. Portfolio diversification represents one of the fundamental principles of investment management. By strategically allocating ...

Below is a graphic representation of the data in the chart above. It may clearly be observed that standard deviation of the portfolio is asymptotic (law of diminishing returns) as it relates to ...

Although mutual funds can't be hedged directly, you can still hedge a portfolio of mutual funds against market risk by buying optimal puts* on a suitable exchange-traded fund, or ETF. The first ...

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our ...

Passive income is money received regularly without having to perform active work. Sources can include royalties, a pension, rental income or a business venture in which the investor is not actively ...

Melissa Horton is a financial literacy professional. She has 10+ years of experience in the financial services and planning industry. Robert Kelly is managing director of XTS Energy LLC, and has more ...