What would eventually come to be called preferred securities have been around since at least the early 1800s. Known then as preference shares, they were issued to help finance capital-intensive projects such as railways and other infrastructure. Investors wanted a preferential structure that assured they were compensated before any payments were made to common stock holders.
Posts from the ‘Portfolio Management’ Category
I’ve written previously about market volatility and how severe volatility can hurt overall portfolio return.
It should always be understood, when in the market, that volatility comes with the territory. Still, investors can manage the impacts of volatility through portfolio diversification. Diversification doesn’t assure a profit or protect against a loss in a market decline, but it can help to smooth the shocks in an investment portfolio.
Many investors may not understand the Consumer Price Index (CPI). But it almost certainly affects them personally. Consider retirees living on a fixed income or employees factoring an inflation rate into their retirement plans. And, of course, we all feel the impact of rising costs at the pump, at the grocery store, and just about everywhere else. Read more
They have names like the Intimidator, Tower of Terror, and that classic: the Cyclone. But I think the most unnerving monster of a roller coaster goes by the name Market Volatility.
Amusement park thrill rides can be fun, but roller coaster-type returns in your portfolio – the sharp swings in value up and down over relatively short periods of time – aren’t very amusing, and could be detrimental to your investment goals. Read more