Four Easy Ways to Reduce The Risk of Your Investment Portfolio

Image by Nattanan Kanchanaprat from Pixabay The dimension with which we measure the risk of an investment asset and, by extension, of an investment portfolio (which is the set of financial assets in which you invest) is volatility. As we have seen on other occasions, volatility cannot collect all the risk, but a significant part, and it is also the standard measure that allows us to know how risky an asset is compared to the market average or other assets. A well-diversified investment in stocks usually has around 20% volatility and fixed income (mainly sovereign fixed income) around 5%. From there we can compare. Those of us who started investing before the last great crisis have the psychological anchor of this one, and the great drops (drawdowns) and their prolongation in time are always very present in our minds. It is what destroys personal psychology from a financial point of view and what makes you quit. The great crises mark generations and establish guidelines of good sense and caution that are absolutely necessary for the operation of a personal investment system that lasts a lifetime. This has the problem that we bias ourselves towards the risks that may occur and build investment portfolios…

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Using Smart Outsourcing to Grow Your Business

There are a lot of different ways your business can make use of smart outsourcing. Giving work to outside firms can save you money, and it can also make it easier for you to reach your customers.  Often times it can do both. And successful companies manage to find these opportunities and leverage them into higher growth. Image source But smart outsourcing is about more than just making things easier. You can use it to actually grow your business. Yet to do this, you need to have the right approach, and you need to make outsourcing decisions that make the business more profitable. To help you pursue the right solutions for your business. Here are some of the ways smart outsourcing contributes to growth. Make your business more efficient When running a business, time is money. Every minute you spend on something not directly contributing to your company’s profitability isn’t necessarily time wasted.  But it is a missed opportunity. Overall, there are a couple of different ways you can make your business more efficient.  You could do an internal audit and implement revamped processes so that things run more smoothly. Or, you can decide to farm out some of your…

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