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What is Your Strategy in Volatile Markets?

World stock markets have been increasingly volatile this summer. Returns for market indices have turned negative and the S&P 500 suffered its first 10% correction since 2012. Because of this, I have received several message in my inbox that ponder what do in this environment. A couple of the titles were “”What you should do in volatile and uncertain markets”” and “”When market conditions become volatile, how will you react?”” The two main strategies that they suggest are 1) stay the course and 2) a diversified portfolio is the best way to be positioned. While this seems sensible in a bull market cycle, these two strategies do not work in a bear market cycle. Therefore, the most important question is not what to do in a volatile market, but is this a bear market?

https://www.youtube.com/watch?v=DH6V2yp4ty0

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What a Greek bankruptcy means to your investment portfolio

A potential Greek bankruptcy has dominated the headlines over the past couple of weeks and this Sunday is a crucial referendum to decide their fate. The Greek PM Alexis Tsipras today urged its citizens to reject an international bailout deal. Many economists and investors are now expecting a bankruptcy in the near term. The big question for investors is: what does a Greek bankruptcy mean to my investment portfolio?

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3 ways to earn more on your Cash

According to a recent study from the Center for Applied Research at State Street Corp, investors around the world are stockpiling cash. With 2008 etched in our memory banks, the 5 year bull market hasn't been able to move cash from under people's mattresses. The highest cash holding are in Japan at 57% while the lowest is in India at 26%. In the US, cash has risen from 26% in 2012 up to 36% in the first quarter of 2014. This may be a smart move after a huge run in the equity markets in 2013.

With the Fed's zero interest policy firmly in place, you have to look for creative ways to earn some return on your cash. Here are 3 ideas that may do better than a big fat zero:

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What If You Cannot Afford To Be Hit By The Next Stock Market Crash?

The stock market is going to crash one day, of that you can be sure. Stated another way, Morgan Housel recently wrote at the fool.com:

Markets crash all the time. You should, at minimum, expect stocks to fall at least 10% once a year, 20% once every few years, 30% or more once or twice a decade, and 50% or more once or twice during your lifetime. Those who don't understand this will eventually learn it the hard way.

Well said. The question is, “”How will you deal with it?””

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The Death of a “Stock Picker’s Market?”

Regardless of the market cycle, financial pundits are constantly proclaiming a “stock picker's market,” one in which active managers will shine. On the surface, this seems to make sense because no matter the direction of the broad market, there are usually certain stocks outperforming to the upside. Even in my personal experience, I have been witness to the significant rewards afforded to those who can identify and own a portfolio of great companies. There are, however, some alarming crosscurrents taking place in US public equities. Here are my observations.

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