Building the Core of a Core-and-Explore Portfolio

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Core/Satellite: A Better Way to Design Portfolios?

Modern portfolio theory has worked long and well for many portfolios, but it has its limitations. Core/satellite construction offers clients a way to indulge in some alpha-producing managers while still controlling costs.

How to Build a Core/Satellite Portfolio

The benefits of the core/satellite approach stem largely from your decisions about how much to allocate to the core and how much to active management. Here are the key issues to consider when designing a core/satellite portfolio.

Are Stocks Too Risky for Retirement Savings?

Stocks in the long run are just as risky as stocks in the short run, says one prominent finance professor. He recommends investing 90% of the retirement portfolio in TIPS and 10% in call options. Another alternative may be to invest the 10% in high beta assets. They are simpler to use than call options, and they never expire.

Commercial Loans Pain Regional Banks

Tied more closely to the health of the local economies than the large banks, some regional banks have reported second-quarter results that show strained loan portfolios as the commercial sector continues to sag in the recession.