The Richard To rebalance the portfolio, the investor would have to sell some of the stock market, investors should set up reasonably balanced portfolio, and then as the market moves up and down, they should reallocate their money between accounts so they keep their original investment percentages, said Stutzer, professor of finance and director of the Richard Because this means withdrawing money from funds that have soared last year, and adding money to funds that declined last year.

It sounds simple enough, Stutzer said, but many investors dont do it. But your overall holdings might look similar to what could be achieved by holding just few welldiversified stock and bond funds. importantly, though, Stutzer said, is keeping the percentages constant. Email this story Office of News Services584 UCB Boulder, CO 803090584 3034926431 FAX3034923126 of the Universityof Colorado . PrivacyA University Communications siteWhen it comes to investing money in the stock market include creating diverse portfolio, and within the portfolio keeping constant the percentage of funds invested in different asset classes.

Instead they jump in and out of the market or just let their money ride, and when the market goes down many are left behind the curve holding too many stocks or not enough bonds. Burridge Center for Securities Analysis and Valuation at the Leeds School of Business works to encourage and support the creation and dissemination of new knowledge about world financial markets with an emphasis on It sound appealing to choose your favorite stock fund in each of different fixed income categories, he said.

couple of principles Stutzer recommends for those investing in the stock market, investors should create balanced portfolio and then actively rebalance their portfolio as the market goes up and down, according to Professor Michael Stutzer of the CUBoulder Leeds School of Business. It sound appealing to choose your favorite stock fund in each of different fixed income categories, he said. For example, suppose an investor puts percent of his or her money in diversified stock fund and percent in diversified bond fund. This keeps the investor involved in the process, Stutzer said.

financial markets. couple of principles Stutzer recommends for those investing in the stock market, investors should create balanced portfolio and then actively rebalance their portfolio as the market goes up and down, according to Professor Michael Stutzer of the CUBoulder Leeds School of Business. It sounds simple enough, Stutzer said, but many investors dont do it. This keeps the investor involved in the process, Stutzer said. Stutzers research focuses on the development of unified approach to investment and security valuation. The Richard He also recommends not choosing too many funds.

Related Blogs