Archive | November, 2015

Understanding Market Capitalization

If you’re creating an investment strategy designed to help you pursue long-term financial goals, understanding the relationship between company size, return potential, and risk is crucial. With that knowledge, you’ll be better prepared to build a balanced stock portfolio that comprises a mix of “market caps.” Market cap — or market capitalization — refers to […]

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When More Risk Equals Less Risk

If I asked you to name the most risky asset class, which would you pick? Emerging markets1 Commodities2 High-yield bonds3 Each investment has unique risks, but volatility of returns is one measure that can be applied to all. At its simplest level, volatility is the likelihood that an investment’s return will change from one period […]

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