Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly diversified portfolio includes large capitalization stocks, small cap, emerging markets, fixed income, real estate and commodities. Barry Ritholtz Read Quote
Despite all the media coverage, glitz and glam of hedge funds, they have not done well for their investors. They have high – some say excessively high – fees; their short- and long-term performance has been poor. Barry Ritholtz Read Quote
Asset managers have different approaches, and I don’t wish to suggest there is only one way to run money. There are many ways one can attempt to reduce risk, improve performance, lower drawdowns and reduce volatility. Barry Ritholtz Read Quote
Amongst the financial Twitterati, the term ‘muppets’ has come to describe any client used and abused by some financial predator. I’ve adopted the term to describe portfolios that have been assembled for purposes other than serving the clients’ best interests. Barry Ritholtz Read Quote
The good news is that economists are intelligent, engaging and often charming folks. The bad news is their work is often of little use to investors. Barry Ritholtz Read Quote
Narrative drives most of economics. Everything seems to be part of a story, and how that story is told often leads to critical error. Barry Ritholtz Read Quote
You have a natural tendency to want an emotionally satisfying tale – and to make investments based on that – despite times when the actual data may be telling you something different. Barry Ritholtz Read Quote
Many hedge fund managers have become billionaires; perhaps this – plus their reputations as the smartest guys in the room – is why they have captured the investing public’s imagination. Barry Ritholtz Read Quote
