Once they understand concepts such as diversification and asset allocation they should be more willing to dip their toes back into the markets.
To gain that fuller understanding, the adviser and investor must consider more than the typical metrics, such as portfolio diversification or levels of debt.
They have made functional such techniques as portfolio diversification, hedging, structured finance, and credit scoring, all of which greatly reduce the riskiness of promises to repay.
Given all the under-performance in these diverse asset classes, investment advisors have taken longer looks at other options such as managed futures and alternatives as other potential diversification options.
Akerele says that although the reality in Nigeria is that most people live in poverty, the rise of sectors such as telecommunications and the diversification of the Nigerian economy beyond oil and gas has created an emerging middle class with bigger spending power.
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The allocation is further divided into sub-categories for more diversification, such as U.S. equities, international equities, Treasury bonds, corporate bonds, etc.
The company also recognized that it needed to have capabilities distinct from its gaggle of smartphone competitors, so it embraced a merger with HP without plumping for diversification strategies such as the ones Motorola pursued.
Although size can bring undeniable advantages, such as in terms of resources and diversification, growth can lead to diminishing returns when larger firms can lose their focus and be forced out of the sectors and transaction sizes in which they achieved their early success.
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Another wheeze was diversification into peripheral businesses such as waste management or renewable energy.
To be blunt, the cause of distress for many parents is ignorance or perhaps even greed: putting all their 529 assets into equities rather than following traditional portfolio diversification into different asset classes such as bonds, which have performed very well as equities have swooned.
This may eventually lead to a merger of Ifil with Fiat, opening the door to an outside investor being brought in to rescue the Fiat Auto division, which is labouring under a heavy dependence on the Italian market, a lack of scale and earlier diversification into difficult emerging markets such as Brazil.
Nam, 59, will need to pick his spots carefully, while pushing--where he can--a diversification into more commercial sales, such as display screens and air conditioners for offices and plants.
In the meantime it's building 11 more plants around the U.S. as part of a diversification strategy designed to weather what could be severe downturns in the electricity market in such regions as Texas and the Midwest.
When they try to persuade investors, and often themselves, that synergies abound (that two and two equals not merely five but six or more) in their takeovers of firms engaged in activities that they know next to nothing about, companies prefer such euphemisms as multi-industry business or non-related diversification.
From different operating systems such as Android, iOS, and MS, to an ever growing diversification of mobile device and screen sizes in tablet to mini-tablet form.
Moreover, the independent movement of global markets, which react to factors such as different domestic monetary and fiscal policy cycles, has historically provided considerable diversification benefits when held in combination with US investments (though correlations tend to converge on 1 in periods of financial crisis).
Another way to try to maintain better diversification if the market goes haywire is through investing in alternatives, such as managed futures.
The events of last year have therefore vindicated Boeing's diversification strategy, even if they have hurt some new businesses, such as a broadband-communications service that was to deliver live television and Internet access at 35, 000 feet, but has only one customer, Lufthansa.
Daiei and other domestic chains such as Seiyu and Ito-Yokado are all struggling to cope with colossal debts and imprudent diversification, and their underfunded outlets are getting tatty.
Unlike conventional mutual-fund investors, who often seek dramatic returns, people making monthly contributions to private pension accounts, such as the 401(k)s offered by many American companies, will rely on diversification and compounding for long-run returns.
Companies such as MEMC Electronic materials, which gained 8.4% in the aforementioned rally, benefit from the diversification and safety they can derive from exposure to these two industries.
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Consequently, it is not surprising that investors do not understand advanced financial concepts such as differences between stocks and bonds, the role of the stock market, and the value of portfolio diversification.
As such, by acquiring Warner Chilcott, Actavis has voted with its feet and enhanced its own ambitions of diversification away from the generics market.
In the meantime it's building 11 more plants around the country, as part of a diversification strategy designed to weather what could be severe downturns in the electricity market in certain regions such as Texas and the Midwest.
He's also a proponent of ETFs because they offer diversification, particularly into asset classes that investors might not be as comfortable navigating on their own, such as commodities and currencies.
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