Tag Archives: market value

You Will Lose Money If You Invest In The Stock Market

I mean that both literally and perhaps not so literally. There will be time when market value will decline and your gain will be negative. There will also be times when you want to sell a loser, and have a good reason. The hope is that overall your stock portfolio will gain, in time, much… Read More »

The Unimportance Of Diversification

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 »

What Is Efficient Market Theory?

Efficient market theory is the idea that stock prices are priced perfectly based on all available public information. Maybe you’ve heard of it? Is Efficient Market Theory True? The stock markets are as efficient as they can be, but stock values are not priced perfectly. From one day to the next, the market can take… Read More »