Weighting for profits; buy/sell strategy maintains portfolio mix and minimizes tax bite
Article Abstract:
Selling some of the best-performing investments that have become over-valued and replacing them with stocks from investments classes that have become undervalued as a method of portfolio diversification and tax planning is discussed. Selling assets before distributions and ways to decrease capital gains tax are discussed.
Publication Name: ABA Journal
Subject: Law
ISSN: 0747-0088
Year: 2001
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Spreading the wealth: diversification decreases risk and solidifies a portfolio - but don't overdo it
Article Abstract:
Diversification is a byword in investment because it reduces the risk of loss, but overdiversification bears its own costs. Holding too many different investments means too much time must be spent tracking them, too much money spent on commissions, and too much mediocrity accepted, diluting the benefit of good investments. Stock market guru Peter Lynch says as few as five stocks may comprise a diversified portfolio, minimizing the chance of substantial loss while benefiting from a sharp rise in any one of the five.
Publication Name: ABA Journal
Subject: Law
ISSN: 0747-0088
Year: 1996
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Deflated expectations; downward trend in prices and home values signals new investment strategies
Article Abstract:
Deflation demands new investment strategies, and investment in stocks and home financing are the two key areas affected. The major effect of deflation will be on home values and income rather than the price of services. Many people bought homes beyond their means as a learned response to inflation, regarding it as an investment whose value would increase. If, however, real estate values are decreasing and income is stagnant, this strategy does not work. The good news is that investment analysts still see low inflation as generally beneficial.
Publication Name: ABA Journal
Subject: Law
ISSN: 0747-0088
Year: 1998
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