A Look at Diversification

A Look at Diversification

Diversification is an investment principle designed to manage risk, but it can't prevent against a loss.

Ancient Chinese merchants are said to have developed a unique way to reduce their risk. They would divide their shipments among several different vessels. That way, if one ship were to sink or be attacked by pirates, the rest stood a good chance of getting through and the majority of the shipment could be saved.

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The Anatomy of and Index

The Anatomy of and Index

Did you know that more than $7 trillion is assets are benchmarked to the Standard & Poor’s 500 Composite Index, including $1.9 trillion in index assets? ¹

The S&P 500 is ubiquitous – we see it on the TV news, read about it in the newspapers and very likely see some of our own investments’ performance compared against it.  For an index that represents approximately 80% of the value of the U.S. equity market, it may be worthwhile to gain a better understanding of how it works. 

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