What to Watch in Your Portfolio
by Charles Rotblut, CFA
Portfolio monitoring is often misperceived as simply watching price changes. Though wealth is created by the combination of rising prices and dividend (or interest) payments, being concerned only with performance can be detrimental to your wealth.
The goal of portfolio monitoring is to determine whether something positive or adverse has occurred to your investments. Specifically, you need to look out for news or developments that could alter the long-term attractiveness of your stocks, bonds and funds. Companies, industries and funds evolve over time, and so will your portfolio.
In this article
Share this article
Facebook
Twitter
E-mail
SeekingAlpha
Stumbleupon
Delicious
LinkedIn
Here are suggestions on what to pay attention to.
Stocks
Earnings Growth: A decline in the rate of earnings growth can be a sign that business conditions have changed. The question that needs to be answered is why. Normal business and product cycles will always cause a high growth rate to slow. Growth rates can also be affected by economic and industry conditions. Particularly worrisome, however, are poor management decisions or competitive threats that curtail growth rates.
To read more, please become an AAII Registered User or CLICK HERE.
Discussion
Good article.
Another aspect that has to do with a fund's size is it's cash position. If a fund's cash position dwindles below the norm then this could be a sign of a lot of recent redemptions, which could easily signal the necessity for more research. Such as in an "un-named" Fairholme fund recently.
posted about 1 year ago by Dave from Washington
