| Asset allocation can help protect your portfolio
Over time, the value of stocks can go up and down. Bond prices fluctuate with interest rates, as do other types of fixed-income securities such as certificates of deposit and investments in money-market accounts. Predicting which investment vehicles are likely to perform better than others at any given point time is next to impossible. So how do you choose investments for your portfolio? The answer is to follow a risk-reduction strategy called asset allocation. By dividing your dollars among a variety of investments, you can decrease the likelihood that all the investments in your portfolio decline at the same time. Of course, by the same token, it's also unlikely that every investment in your portfolio would go up at the same time. Essentially, asset allocation diversifies your portfolio among several distinct asset classes.
ASIA CREDIT-Japan spreads to stay wide as economy falters
TOKYO, March 27 - Japanese credit spreads have only limited scope to fall further as the focus shifts to chances of the country's faltering economy hurting company earnings, even as hopes rise for a recovery in global credit market turmoil. Analysts are turning their attention to effects on growth from the severe global credit crunch and a shaky financial system, as they expect a serious U.S. deterioration would hurt Japan, already hit by slumping housing and real estate markets from tighter regulations, rising basic materials costs and the stronger yen. .
District cautioned on plan to borrow
With debt costs doubling and tripling for school districts and towns across the country because of an unstable bond market, this probably isn't the best time for government bodies to borrow money. That's the concern district resident Mark Hoover raised at this month's meeting of the Camp Hill School Board, which has plans for a bond sale later this year to help pay for the renovation and expansion of Eisenhower Elementary School. The board could be borrowing under unfavorable terms that could result in significantly higher taxes or reduced programs, Hoover said. The market looked better last fall when the board sold about $9.8 million in general obligation bonds, also for the $14.69 million building project. The district expects to pay an average interest rate of 4.21 percent on that 20-year debt.
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