Sentences with phrase «allocation in a single stock»

Not exact matches

The single most important thing you want to confirm is your asset allocation, or the percentage of your holdings that are invested in stocks vs. bonds.

Ben shares some ideas on options for investors who are sitting on large gains in their portfolio, with a focus on position sizing (rebalance when something gets larger than your targeted asset allocation), avoiding concentration in a single stock (specifically employer granted stocks), the benefits of diversification, and «reverse dollar cost averaging», whereby you gradually reduce your stake in highly valued equity by regular sales over a course of several months.

Setting limits on allocations to any single stock, fund, and sector will lower specific risk in your portfolio.

[Over the years, I've homed in on 3 - 7.5 % as an optimal allocation for a single stock, in a portfolio of 15 - 20 (core) holdings].

As explained in the slice and dice part of Seven Simple Steps to Investing, a REIT index fund (and you should use only REIT index funds, not single REITs) should be no more than 25 % of your domestic stock allocation.