The classical portfolio management theories like Markowitz Portfolio Theory and The Efficient Frontier suggest that investment in financial assets must be done in such a way that return from one asset offset the return from another asset. By doing so, investor will be indifferent about the economic cycle and the overall return from the asset will be better in the long run. Hence these theories suggest investors that if any investor want to be better off from their investment they should simply: Don’t put your all their eggs in same basket. Of course it’s easy said than done. There are techniques that should be followed to make the best selection of assets for a portfolio. And no matter how careful an investor is in selecting the assets in portfolio, he/she is not 100% sure that it offsets the risk. There theories were devised when the things around the world were much simpler. Technology and world market had not expanded so exponentially. The flow of information and its
Everyone has a side that is not prominent, but is strong. Here are my thoughts about everything that I see and feel, which others don't expect to be existing in me.