Correlation and Portfolio Performance

Asset allocation refers to how an investor’s portfolio is divided among asset classes, which tend to perform differently under different market conditions. In the financial world, correlation is a statistical measure of how two securities perform relative to each other. Securities that are positively correlated will have prices that tend to move in the same direction. Securities that are negatively correlated will have prices that move in the opposite direction.

Don’t Underestimate the Need for Disability Insurance

Most of us rarely consider the fact that we could become disabled. Yet being unable to work could result from any number of circumstances. Cancer, heart disease, worsening medical conditions like diabetes, injuries caused by an accident, and behavioral health illnesses are just a few examples of common situations that can lead to significant time out of work.