How Do I Choose a Sector of the Market to Invest In?

choosing a sector to invest in

What is a sector? Sectors are categories like energy and healthcare. Or Utilities and Real Estate. The equity markets use eleven distinct sectors. The Global Industry Classification Standard also known as GICS is the primary financial industry standard for defining sector classifications. Sectors are used to help diversify your portfolio. Ideally you should have every…

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Diversification

Multicolored umbrellas

The word “diversification” comes up often in finance. Diversify your portfolio. Diversify your risk. Diversify your asset classes. I am focusing on diversification in this investing article  to show you what a diversification strategy is and how to implement it. Sometimes a diversification strategy can sound perfectly reasonable when it isn’t. Having simple “rule of…

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Bonds Part Two

Painted Ladies – The Wildlife Trusts Butterflies and Interest Rates Driving home last week, I thought I was in the  “Day of the Locust“ movie. The swarms of locusts turned out to be painted lady butterflies. They are small butterflies. They fly amazingly fast. There were millions of them (not an exaggeration) migrating north from…

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Good Bye 2008

ship sailing into the sunset

Are you thinking my title is a big typo? That I meant to say Good Bye 2018? It isn’t a typo, I do mean 2008. Why are we saying Good Bye to 2008 ? Not because it was one of the worst years for stock market returns. Not because of the housing crisis. Not because…

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SEC Charges Former Senior Attorney at Apple With Insider Trading

02/13/2019 12:55 PM EST The Securities and Exchange Commission today filed insider trading charges against a former senior attorney at Apple whose duties included executing the company’s insider trading compliance efforts. The SEC’s complaint alleges that Gene Daniel Levoff, an attorney who previously served as Apple’s global head of corporate law and corporate secretary, received…

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Two Advisory Firms, CEO Charged With Mutual Fund Share Class Disclosure Violations

12/21/2018 04:09 PM EST The Securities and Exchange Commission today announced settled charges against two New York-based investment advisers and the CEO of one of the advisers who selected mutual fund share classes inconsistent with their disclosures to clients. The firms and the CEO will collectively pay more than $1.8 million, which will be returned to…

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SEC Charges Two Robo-Advisers With False Disclosures

12/21/2018 12:40 PM EST The Securities and Exchange Commission today instituted settled proceedings against two robo-advisers for making false statements about investment products and publishing misleading advertising.  The proceedings are the SEC’s first enforcement actions against robo-advisers, which provide automated, software-based portfolio management services. An SEC order found that Redwood City, California-based Wealthfront Advisers LLC…

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SEC Charges Family Friend of Former Investment Banker With Insider Trading

11/02/2018 10:00 AM EDT The Securities and Exchange Commission today charged an IT professional in Texas who allegedly participated in an insider trading scheme perpetrated by a former Wall Street investment banking analyst. The SEC’s complaint alleges that Hamed Ettu, a family friend of the analyst Damilare Sonoiki, received illegal tips about nonpublic impending mergers…

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Passive Investment Management versus Active Investment Management

closed blue door and green door

I love a good debate. In the investment world there is an ongoing debate over active management versus passive management. Is it a debate worth debating? The debate refers to a style of investment management. The gist of the debate is whether an active manager can outperform a passive manager over time. Outperformance means the…

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Exchange Traded Funds

a green apple and an orange

Who comes up with these names? Couldn’t they be a little bit more creative? Are ETF’s the same as mutual funds? An Exchange Traded Fund refers to shares of a fund traded on an exchange. The same way stock is traded on an exchange. So, someone rearranged the words and came up with Exchange Traded…

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