Search Results for: diversification

What is the optimal diversification for your portfolio?

by

Diversification is a strategy that investors may use to reduce risk in their portfolio. This is achieved by holding stocks in different sectors and different market caps.  However, you can overdiversify and this can affect the performance of the portfolio. In this article we talk about the dangers of overdiversification and what the optimal number of shares is for a portfolio. Optimal Number of Shares for Diversification Twenty stocks is the optimal number to have in a share portfolio. Your …

Read MoreWhat is the optimal diversification for your portfolio?

The Benefits of Diversification

by

When an investor is thinking of becoming a client, the first thing we do is conduct a free portfolio review. Often the portfolio contains either not enough stocks, or too many. This means that the first tip I can give someone is to ensure you have some proper diversification. The stock market can be rather volatile, so one way to protect you from adverse movements to your share portfolio is to diversify. Diversification is a strategy which involves acquiring shares …

Read MoreThe Benefits of Diversification

What stocks do well with interest rate cuts?

by

When interest rates are cut, certain types of stocks tend to perform well. Here are some examples: Rate-sensitive sectors    Real Estate: Lower interest rates reduce the cost of borrowing for real estate companies, making it cheaper for them to finance new projects or refinance existing debt. This can lead to increased investment in real estate, driving up property prices and boosting the stocks of real estate investment trusts (REITs) and property developers.     Utilities: Utilities typically carry a …

Read MoreWhat stocks do well with interest rate cuts?

The definition of a toppy market

by

The term “toppy” is frequently used to convey a market which seems to be trading at its high. In this article we talk about what a toppy market it and the strategies that can be implemented to reduce risk in this kind of market. Definition A toppy market occurs when the market has hit a level where market looks like it can’t extend from. There may be market sentiment that there is an asset bubble forming. Investors are concerned with …

Read MoreThe definition of a toppy market

Is ALQ still a value trap?

by

ALS Ltd (ASX:ALQ) shares recovered from a 1-year lows in November. However, the recovery was short-lived. Recent weakness prompted us to research ALQ in The Dynamic Investor to assess whether current levels present a more attractive entry point. About ALS Ltd ALS Ltd is a leading testing, inspection, certification and verification company, with operations in over 65 countries. Following the sale of the Asset Care business in late FY23, the Company now has two operating divisions: i. The Life Sciences …

Read MoreIs ALQ still a value trap?