Does diversification matter?

Is modern portfolio theory dead?

Perhaps, perhaps not, but either way it might not be doing your clients much good, since over-adherence to the diversification mantra essentially serves as license to abdicate knowledge of what they’re investing in. A good read on the topic was featured in a recent blog on our sister site Canadian Investment Review.

The site also features some excellent analysis on what current market conditions mean for high-yield bonds, and a look at ways to mitigate bubble risk. Real estate anyone?

Meanwhile, over at Capitalmagazine.com, the site for readers of Canadian Capital magazine, there’s a great video on dividend paying stocks that can provide you with great conversation starters for client discussions.

And, if your clients are exploring private equity investing, there’s a good primer that will help you explain the risks and rewards and help your clients determine if they have the patience for these plays. The site also has some great tools you can share with clients to help calculate net worth, retirement needs, and the inventory of their high value trinkets.