The Key to Investment Success:Understanding Low Correlations
- Topics:
- Commercial Lending
- Tags:
- Finance,
- FinancialCounsel.com,
- Globalization,
- Investment,
- Management,
- Stock,
- Stock Market,
- Strategy
- Source:
- FinancialCounsel.com
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Overview: The article talks about the managing investments; the phrase "bear market" doesn’t adequately capture how it really felt. It considers the stocks that were among the most widely held by investors at the beginning of the year (display right) — indeed, some of the best and largest companies in America. This article mainly emphasize — for instance: that no one market always wins; that while we try to keep our eyes on the long term, it's the short term we have to live through; that the pain of losing money is far more intense than the pleasure of a comparable gain. Several forces are behind the step-up in U.S. and foreign correlation’s—First and foremost is the rising tide of globalization. Currency provides additional diversification benefits— Not only do the world’s stock markets not march in lockstep, but currency movements are weakly correlated with most other assets—even with their own local stock markets.
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Format: HTML | Date: Jan 2003 | Pages: 1
