Jemstep Blog

Asset allocation is at the heart of the portfolio management process. For investors seeking to enjoy risk-efficient returns over a long time period, prudent allocation decisions are most likely the most important component for sustained success. With this post we continue the recent focus on the role of Exchange Traded Funds (ETFs) and suggest how in the course of conducting effective ETF research you can put together an intelligent allocation strategy based on individual ETF exposures.

In order to make sound decisions when it comes to financial asset management, investors should be aware of their own psychological blind spots. These can lead all of us to make persistently poor financial choices—errors that over time can do significant damage to our portfolios. Here are some examples to look out for – and avoid – when making decisions about your own portfolio.

Exchange-Traded Funds (ETFs) have grown dynamically over the past decade, from less than $100 billion in 2000 to just under $800 billion in 2009 for the U.S. market alone. ETFs are a critically important feature of the investment landscape, and to help with your ETF research, here is a primer on the important things you need to know.

Asset markets are pretty unsettling these days. The S&P 500 lurches 2% in one direction, then 2% in the other direction, all in the course of a single trading day. Markets for risk assets are volatile, directionless and buffeted by multiple influencing variables. It can be unsettling even for the most seasoned veterans of many market cycles, let alone for the novice investor. In my experience following these three suggestions can help you to keep your head when everyone around you is losing theirs.

In our previous post on the subject of style investing we looked at the strange phenomenon known as the “value effect”, where over long time horizons so-called value stocks exhibit superior performance to growth stocks. In our third and final post in this series we examine this phenomenon in more detail.

When conducting your mutual fund analysis, many websites and tools take it for granted that you are aware of the different types of mutual funds available. Here is a primer on bond mutual funds to help you with your mutual fund research.