Skip to main content

The Investor's Advocate: Diversity Dilemma

 

Pending Challenges to Conglomeration Could Dismantle Long-Used Strategy Which Fuels Most of 401(k) Growth


Could one of the most successful strategies behind the growth of your retirement plan soon become obsolete? And is so, what exactly will replace it? These intriguing queries are addressed in a new posting called "The Potpourri Paradox" (https://www.howtoinvestblog.net/2021/01/the-potpourri-paradox.html) by Anthony Rhodes, on his popular How To Invest blog ((www.howtoinvestblog.net). Mr. Rhodes is the owner of wealth management firm The Planning Perspective  (www.theplanningperspective.com).

"As far as investment strategies go, I can't think of any which has had more of a direct impact on capital appreciation than this one." he began. "Diversification is the single most important resource in an investors' toolbox, and while the post covers possible alterations on the micro level, it still could have a definitive effect on portfolio growth." he added. "We'll have to wait and see how it all plays out, but for right now, it certainly qualifies as a cause for concern."

Will the possible changes decrease the overall growth rate of your retirement plan? Or, is it all just much ado about nothing? Mr. Rhodes covers all bases within the post.

"This strategy has faced challenges before, and has always emerged intact. But this time may be different." he explained. "New realities are unfolding which it has never encountered, which may make the assumption of business as usual difficult." he added. "If it can adapt to these changes, it will continue to remain the cornerstone investment strategy which it always has been, and if not we'll have to seek out newer alternatives. It's as simple as that." he closed.

(Proprietary material. Do not reproduce without permission.)  

Labels:

Comments

Post a Comment

Popular posts from this blog

The Investor's Advocate: Impulse Control

  Remaining Focused During Unpredictable Events is Key to Investment Success   Has recent events caused you to feel a bit...anxious regarding your portfolio? If so, then you might find an essay entitled "Anxiety Notoriety"  (https://www.howtoinvestblog.net/2019/06/anxiety-notoriety.html ) helpful. The posting is one of the many useful resources available to investors at How To Invest  ( www.howtoinvestblog.net ). The blog is authored by Anthony Rhodes, who is the owner of wealth management firm The Planning Perspective ( www.theplanningperspective.com ). "Sometimes, when it comes to our investments, we van actually become our own worst enemy." he began. "Especially during unpredictable events such as those we've been experiencing recently." he added. "Our impulses are telling us to behave in one fashion, and our intellect, another, and oftentimes it's the magnitude of the event which wins out." he f...
Post a Comment
Read more

The Investor's Advocate: Foiled Fizz

  Tools to Help You to Counteract the Effects of Inflation With prices on the rise, are there any resources available to help both your wallet and your portfolio to counteract their effects? If so, what's the best way to employ their usage? For the answers to these questions, you should read a posting called "Deflation" (https://www.howtoinvestblog.net/2021/09/deflation.html), a new article on Anthony Rhodes' popular How To Invest blog (www.howtoinvestblog.net). Mr. Rhodes is the owner of wealth management firm The Planning Perspective (www.theplanningperspective.com). "Everyone abhors inflationary price hikes." he began. "Consumers have come to expect gradual increases over time of the products and services which they use on a daily basis, but the problem with inflation is that this process is expedited to short spans, and causes people to make adjustments to their normal monetary allocations." he added. "This may include the problem of havin...
Post a Comment
Read more