Posted in Investment

Investors and advisors alike have long debated the merits of active versus passive investing. As the markets have taken a downward turn over the last year in response to rising interest rates, this age-old question has emerged again. Passive investing seeks to generate average market returns and involves hanging on to investments over a long period of time in order to ride out the market’s ups and downs. Active investing seeks to outperform the market — a trait that many…
Continue reading Active vs. Passive Investing: Which Is Best?

Lately, financial pundits seem to be constantly warning that a bear market is coming, arguing over whether one has begun or predicting when one will end. It’s less common for them to actually define one. From their ominous tone, you can tell it’s less appealing than its counterpart, a bull market. But what is it exactly? How does it differ from other market fluctuations? And how long does one last? What is a bear market? A bear market is an…
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Risk is an inherent part of investing. After all, no one can control the losses or gains of a particular asset, sector, or the market as a whole. But you can take steps to manage your risk by diversifying your portfolio. Here’s a look at what diversification is, why it matters, and how to do it. What is diversification? Diversification is a technique that can help reduces risk and volatility in your investment portfolio. The idea is to invest across…
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Bonds play an important role in a diverse investment portfolio. As fixed-income securities, they can provide a stable return until they mature. As with any investment, bonds are subject to a certain amount of risk. Interest rate risk, for one, is the possibility that interest rates will rise after an investor buys bonds, causing them to miss out on potentially higher yields. To mitigate this risk, investors may opt to buy bonds with staggered maturity dates using a strategy called…
Continue reading An Introduction to Bond Ladders

Sometimes stock prices drop across the entire market at once triggered by a range of things, such as a natural disaster, political turmoil, concerns over rising interest rates, a global health crisis, or problems within a single sector that cause a domino effect across the market. A decline in stock prices of 10% from their most recent high is called a market correction. Long-term investors experience many of them over the course of their lives. So, if you’re investing for…
Continue reading How to Weather a Market Correction