The Diversification Myth
Buying a wider variety of stocks won’t decrease risk much if their prices are closely correlated
The Diversification Myth
Your Trading Guide to International ETFs and American Depository Receipts (ADRs)
Investors and traders seeking market exposure outside the U.S. can consider international ETFs and ADRs—both of which trade on American exchanges, and offer associated equity options
First, Diversify
Reduce risk by investing in a variety of stocks, sectors and asset classes
Diversification & Correlations
Diversification is spreading money across multiple assets as opposed to just 1 or 2 (i.e. “don’t put all your eggs in one basket”). So how do you pick those assets? Correlation matrices are a good place to start. Pick symbols that have correlations closer to 0. So if you are long the S&P 500, perhaps … Continued
Trading Post-Pandemic Shifts in Market Correlations
The extreme shifts in market correlations observed during the heights of the COVID-19 pandemic have now mostly “normalized,” and in some cases, even dropped below pre-pandemic levels.
Where in the World Are Opportunities?
Early trading in 2021 suggests bullish optimism in global markets carried over into the new year.
Finally, an Answer to How Much Crypto You Should Own
According to new research, there’s reason to believe that 4% may be a good starting point when it comes to allocating cryptocurrencies in the portfolio.
Tom Sosnoff Builds Futures
Investors and traders looking to expand their market activities beyond stocks, exchange-traded funds (ETFs) and equity options may want to tune into a recent TradeTalk with tastytrade founder and co-CEO Tom Sosnoff. The focus of the TradeTalk installment is futures and futures options—specifically, how to build and manage complex futures portfolios. Aside from founding and … Continued
Portfolio Diversification in a Post-Pandemic World
While an international public health emergency like COVID-19 isn’t a frequent occurrence—at least not one affecting such a large portion of the human population—it nonetheless speaks to the importance of a diversified investment portfolio. As has been well-publicized, the pandemic catalyzed shutdowns of national economies across the globe, and the result has been an impairment … Continued
TLT ETF ABCs v SPY + ZIRP = Opportunity
Don’t look now, but the iShares 20+ Year Treasury Bonds Exchange-Traded Fund (TLT) has quietly pushed back toward its all-time high and is trading just above $143. The all-time high came in late August when TLT climbed to $148.90. While the full name might sound like a mouthful, the TLT serves as a proxy for … Continued