The best investment advice you'll ever receive is not a new, exciting, cutting-edge secret that you were probably hoping for. It's quite the opposite, actually. The best advice is the yawn-inspiring, time-tested, 'effective-since-the-advent-of-the-stock market' approach, and it's no secret.
It's diversification.
I know what you're thinking: quit wasting my time with this boring stuff! And I get it - you've probably heard the 'diversification' bit a million times. But I'd argue that the concept of diversification isn't boring at all. Boring to me is watching C-Span for 16 hours straight. Diversification is different: it's actually more challenging than it is boring, for two very critical reasons.
Reason #1: Everyone Knows Diversification is the Answer, But Very Few People Know How to Properly Diversify
This is the equivalent of everyone knowing that eating healthy leads to a more healthy (and perhaps longer) life, but few people know what to actually eat and how to organize healthy meals. Investing is very similar. Most folks know that a well-diversified portfolio can lead to strong risk-adjusted returns over time, but few actually know how to build the diversified portfolio in the first place. What if there were easy-to-use technology that could give you ideas for how to build a diversified portfolio yourself?? (spoiler alert: it exists right now, at tickeron.com)
Reason #2: Investors Get In Their Own Way too Often
The second reason has more to do with human nature than anything else. Humans are hard-wired to be wary of risk and to make emotional decisions, especially when fear is involved. And make no mistake - there is plenty of fear in the stock market. All too often, investors will see something on the news that causes them to make a significant asset allocation adjustment, such as selling a big portion of stocks. But that's a major folly: diversification works if you stick with it for the long-term, but many investors have difficulty with that. That's why it makes sense for investors to acknowledge your weakness where it exists, and use the help of a Financial Advisor or the A.I. at Tickeron, to keep you on track. Take the decision-making process out of your hands a bit, and allow experts to do more of the work.
JP Morgan released some research recently that underscores the importance and the value of diversification. From 2001 - 2015, they analyzed two different portfolios. The more diversified portfolio, I'll call it Portfolio #1, had exposure to eight different asset categories: S&P 500, Russell 2000, REITs, EAFE Equity, Emerging Market Equity, Barclays Aggregate Bonds, US High Yield Bonds, and Emerging Markets Debt.
The second portfolio, Portfolio #2, had exposure to only three asset categories: S&P 500, EAFE Equity, and Barclays Aggregate Bonds.
Guess which portfolio performed better over the 15-year period?? You guessed it: Portfolio #1, the more diversified portfolio. It delivered annualized returns of 6.2%, compared to the less diversified portfolio which delivered returns of 5.4%.
Diversification makes a difference and history tells us that it works. The challenge facing investors today is knowing how to diversify, and where to invest assets. But it doesn't have to be a challenge any longer - you can generate ideas right here at tickeron.com.
The RSI Oscillator for ACWI moved out of oversold territory on April 22, 2024. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 32 similar instances when the indicator left oversold territory. In of the 32 cases the stock moved higher. This puts the odds of a move higher at .
The Momentum Indicator moved above the 0 level on April 26, 2024. You may want to consider a long position or call options on ACWI as a result. In of 72 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ACWI just turned positive on May 02, 2024. Looking at past instances where ACWI's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
ACWI moved above its 50-day moving average on May 03, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ACWI advanced for three days, in of 368 cases, the price rose further within the following month. The odds of a continued upward trend are .
ACWI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 373 cases where ACWI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 10-day moving average for ACWI crossed bearishly below the 50-day moving average on April 19, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ACWI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category ForeignLargeBlend