📚 Equity Investments and Interest Bearing Investments

💡 Interest Bearing: Lower Credit, No Volatility, Market Risk, Purchasing Power Risk

📝 Equity Investments: Higher Credit Risk, Greater Volatility, Faster Growth, Inflation Protection

🔍 Asset Classes: Stocks, Bonds, Money Market Instruments, Real Estate, Commodities

🎯 Strategic Allocation

📚 Tactical Allocation

💡 Active Asset Management: Look for inefficiencies

📝 Passive Asset Management: Index fund is just fine

🔍 Portfolio Rebalancing: Reallocating money from over performing to under performing assets.

🎯 Passive Portfolio Rebalancing: Continually reallocating

📚 Active Portfolio Rebalancing: Manager decides timing.

💡 Sector Rotation: Different sectors tend to do well at different times in business cycle

📝 Diversification: minimize risk tolerance

🔍 Tracking Error: underperforming index

🎯 Financial Leverage: Borrowed funds must have lower interest rate than return

📚 Bond Portfolio Immunization: Portfolio with specific amount at a specific date

💡 Bond Contingent Portfolio Immunization

📝 Momentum and Whisper Numbers

🔍 Funding Techniques: Lump Sum Funding and Dollar Cost Averaging

🎯 Reinvestment: Reinvesting dividends, capital gains will lower dollar cost average

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