Let’s talk a little about diversification. Do you need to diversify to reduce risk or reduce volatility? Let’s talk about risk. Negative risk implies you lose actual money, not just market value. If you own tons of just one stock, you have a real risk that you will lose all of your money, in a… Read More »
Diversification is the idea that owning stock of companies in different businesses, different sectors, and or different regions reduces the risk of a portfolio. While there are some extreme cases where diversification might prevent actual loss, the main thing diversification does is reduce volatility. What is Risk? Risk is the likelihood that you will make… Read More »
Are you an internal locus of control person or an external? External locus of control people believe that everything that happens to them is beyond their control. Internal locus of control people believe that they control what happens to them for the most part. Let me tell you, if you are going to blame anybody… Read More »