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diversification

The wrong perception of fully invested

on Tue, 09/27/2016 - 14:30

I remember way before I became a financial advisor, I have heard how much cash Larry Sarbit (a famous fund manager, he was at AIC at the time) would hold a large amount of cash while unit holders would be yelling and screaming “why are we paying you to hold cash?!”

Over all these years, Sarbit had never changed a bit on his money managing style (http://www.theglobeandmail.com/globe-investor/personal-finance/larry-sar... and http://www.fool.ca/2013/10/31/larry-sarbit-on-holding-cash-and-what-he-t...). 

We had been always hear people talking about fully invested (an article from Forbes -

What will you do if you are not happy with your broker?

on Thu, 06/28/2012 - 13:56

In chatting with a new prospect the other day, I was asked to give my advice on his current portfolio statement. I spent about a day and a half researching his current holdings, trying to figure out what kind of risk he was being exposed to at the moment. It turns out, there were not many tools or software available out there, to help me determine where his portfolio risk fell; most were only able to provide the asset allocation, but not the actual risk.  

Finally, before I met with him again, I was able to find a way to have it all plotted out, with a volatility meter!! :D

I explained to