Don’t Forget Your Investing Basics – Linkfest (July 30)

by Aaron Levitt | July 30, 2014 9:36 am

When the market is going gangbusters — as it has been for the last five years or so — we tend to forget some of the most basic rules of portfolio construction and personal finance. Basic concepts (the kind that save our butts and boost returns) tend to get chucked out of the window when the stock market is surging. Things like diversification, proper asset allocation and understanding your risk profile etc. are often forgotten as we load up on rising biotech and momentum shares. A big one we forget: stocks aren’t bond substitutes. Here’s Russ Koesterich at the BlackRock Blog explaining why we’d do well to remember that[1].

Patrick O’Shaughnessy’s Tumblr (Patrick O’Shaughnessy): Global is the new core. Home town bias is killing your portfolio[2].

The Irrelevant Investor (Michael Batnick): Have an investing plan as well[3].

The Australian (Don Stammer): And don’t forget to allocate all your holdings accordingly[4].

Bloomberg (Eric Balchunas): If you’re into momo stocks, the airlines are killing it. Unfortunately, there’s no broad way to play them[5].

The New York Times’ Upshot (Justin Wolfers): Sorry Fed haters — stimulus worked to boost the economy[6].

Investor’s Business Daily (Reinhardt Krause): Get ready for the telecom REITs. Windstream (WIN[7]) gets the IRS’s blessing[8].

Slate (Will Oremus): Are Zilliow (Z[9]) and Trulia (TRLA[10]) trying to be the Facebook (FB[11]) of home buying[12]?

Beyondbrics (Alan Beattie): What happens when Argentina defaults … because they definitely will[13].

TechCrunch (John Biggs): Vegas gets Bitcoin fever and an ATM! Put it all on black[14].

Aaron Levitt is an investment journalist living in Ohio. With nearly two decades of experience, his work appears in several high-profile publications in both print and on the web. Also likes a good Reuben sandwich. Follow his picks and pans on Twitter at @AaronLevitt[15].

Endnotes:

  1. explaining why we’d do well to remember that: http://www.blackrockblog.com/2014/07/28/asset-class/
  2. is killing your portfolio: http://patrickoshag.tumblr.com/post/93207823244/the-dangers-of-portfolio-patriotism
  3. investing plan as well: http://theirrelevantinvestor.tumblr.com/post/93158965668/have-a-plan
  4. holdings accordingly: http://www.theaustralian.com.au/business/opinion/asset-allocation-the-key-to-improving-returns/story-e6frg9r6-1226996566561?nk=d34d8f1a09778be687f382511f2a9e50
  5. no broad way to play them: http://www.bloomberg.com/news/2014-07-29/the-long-airline-stock-rally-has-investors-missing-this-etf.html
  6. stimulus worked to boost the economy: http://www.nytimes.com/2014/07/30/upshot/what-debate-economists-agree-the-stimulus-lifted-the-economy.html?_r=0
  7. WIN: /stock-quotes/WIN-stock-quote/
  8. gets the IRS’s blessing: http://news.investors.com/072914-710770-windstream-reit-conversion-faces-possible-fcc-hurdle.htm?ven=yahoocp&src=aurlled&ven=yahoo
  9. Z: /stock-quotes/Z-stock-quote/
  10. TRLA: /stock-quotes/TRLA-stock-quote/
  11. FB: /stock-quotes/FB-stock-quote/
  12. home buying: http://www.slate.com/blogs/future_tense/2014/07/28/zillow_acquires_trulia_could_become_the_facebook_of_homes.html
  13. because they definitely will: http://blogs.ft.com/beyond-brics/2014/07/29/argentinas-default-option-and-its-consequences/
  14. Put it all on black: http://techcrunch.com/2014/07/30/robocoin-opens-the-first-bitcoin-atm-in-vegas-baby/
  15. @AaronLevitt: https://twitter.com/AaronLevitt

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