Made a video addressing a popular concern about financial advisors: when they’re needed, what types there are, how to find a good one, etc. Made a very long video to answer (sorry - but there was so much to say!). To offer penance, I’ve kept the post brief: mostly just helpful links.
“Sharpe Ratio” is used often on this blog, but not all readers may be familiar with what it is, what it can tell you, and its limitations. So, a Risk Parity Basics post to make sure everyone is on board. In short: it’s a measure of risk-adjusted return that we use to compare assets and portfolios.
Regardless of the investing environment, diversification can help lower total portfolio volatility and stabilize, or even increase, returns. This wonderful illustration demonstrates just how important diversification is and what impact combining multiple asset classes can have in your portfolio.
