Dealing with Stock Market Risk

“Diversification”—holding many different stocks instead of just a few—helps to mitigate individual stock risk, and as such, is a staple of prudent portfolio management. But it does nothing to offset market risk.

Can My Bonds Lose Value?

Definitely. While there can be a number of causes, let’s discuss the one that’s on everyone’s mind lately: rising interest rates. Generally, as rates rise, bond values go down.

How Much Stock Should Be in Your Portfolio?

Everyone talks about “asset allocation” – spreading around your assets into different buckets in order to reduce risk. At the highest level, it comes down to how much you put in stocks and how much you put in nonstocks (bonds, real estate and cash). So how much stock should be in your portfolio? In other words, given that stocks generally…