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Understanding Diversification with the Callan Periodic Table of Investment Returns

“The Periodic Table of Investment Returns depicts annual returns for 10 asset classes, ranked from best to worst performance for each calendar year.”https://www.callan.com/periodic-table/Click on: Download the PDF. I like this visual presentation of how asset categories fluctuate from yielding the highest returns one year to the lowest (or much lower) in subsequent years. The table…

Difference Between Socially Responsible Investing (SRI) and Environmental, Social and Governance (ESG) Investing

Samual Adams, writing for Advisor Perspectives (12/17/18), explains the difference between SRI and ESG: “SRI was originally developed to allow investors to avoid companies they disliked for ethical or values-based reasons. This original form of SRI is now called “exclusions” or “negative-screen” investing. Other SRI strategies have been developed, including positive screen or thematic investing,…

How to Protect Your Retirement Savings From a Crash

“Since the market hit rock bottom about eight years ago, it has been steadily improving, and investors have seen skyrocketing stock prices and annual returns. Unfortunately, those spectacular averages won’t last forever, and the investment pros have some pretty pessimistic predictions for the future,” according to Katie Brockman writing for The Motley Fool. “So what…

Understand Key Concepts: Return and Rate of Return

When evaluating investment options or assessing the performance of your current investments, two concepts are key: return and rate of return. In this podcast, we explain both and how to use them to get the most out of your investments. Listen | 4 min. 45 sec. https://www.finra.org/investors/podcasts/key-concepts-return-and-rate-return?utm_source=MM&utm_medium=email&utm_campaign=Investor%5FNews%5F053117%5FFINAL Source: Financial Planning for Women

A visual representation of investment diversification

Check out the Squared Away blog for an effective visualization of investment diversification. I used the Callan Table in teaching diversification to my university students. It’s a great way to understand why no one can predict future investment returns. http://squaredawayblog.bc.edu/squared-away/the-picture-of-investment-diversity/ Source: Financial Planning for Women