Investment strategies and portfolios are tailored plans designed to meet financial goals through the careful selection and management of assets. The cornerstone of a successful investment portfolio is diversification, spreading investments across various asset classes like stocks, bonds, and real estate to mitigate risk. Asset allocation is another key strategy, determining the mix of assets based on an investor’s risk tolerance, goals, and investment horizon. Investors often choose between active investing, which seeks to outperform the market through strategic buying and selling, and passive investing, which aims for long-term growth by tracking market indices with lower transaction costs. Regular portfolio rebalancing ensures the investment mix remains aligned with the investor’s objectives, adjusting for market fluctuations and life changes. Tax-efficient investing strategies can also enhance returns by minimizing tax liabilities. Ultimately, a well-considered investment strategy and portfolio management approach can help individuals navigate market complexities and achieve financial growth over time.
How does war affect the stock market? Can we expect poor returns and increased volatility? Or is it a good time to buy when you hear the sound of cannons? Perhaps counterintuitive, history suggests that stock markets show less volatility…
The Second Grader’s Starter Portfolio by Paul Farrell is a passive index portfolio that aims to diversify investments across stocks and bonds. The Second Grader’s Starter Portfolio strategy can be implemented with only 3 ETFs. You do not need to…
Commodities are difficult to trade profitably, with few strategies offering any statistical edge. Despite this, finding effective commodities strategies might be worth the effort, as they allow for profits that are uncorrelated with those of other strategies and tend to…
Throughout history, gold has consistently held its position as the preferred global currency. Now, investors primarily acquire gold as a safeguard against economic instability and, of course, inflation. How does gold perform when inflation is high? Gold has famously been considered…
I signed my first client and proceeded to short my first stock. It almost proved to be my last. Over the next few weeks, I watched the stock trade up to 20, then 30, then 40, finally breaking through 50…..But…
Many investors prefer to invest using passive investment strategies and “lazy” (but smart?) portfolio management. Increased knowledge, lower costs, and a rise in fund offerings (both ETFs and mutual funds) have contributed to this. Passive strategies include a popular asset…
Peter Lynch is a famous but retired money manager. Lynch managed the Magellan Fund of Fidelity from 1977 to 1990 with outstanding returns: more than double the S&P 500’s return. Lynch made 29.2% annual returns for his investors and retired…
A recent study about Norwegian traders and investors sheds some light on the returns (or lack of) based on diversification, age, wealth, and risk appetite. The study is called What Do the Portfolios of Individual Investors Reveal About the Cross-Section…
Meb Faber, a famous money manager and writer, has several times stated he is a trend follower at heart. Back in 2015, he published an article about momentum and trend-following strategy called Meb Faber’s Three-Way Model in gold, stocks, and…
Are you tired of constantly monitoring the stock market and making emotional decisions that can hurt your portfolio’s performance? If so, then a quantitative investment strategy may be the solution for you. With the help of investment experts, this investment…
Some IPOs go on to be multibaggers, like for example Facebook, Amazon, and Netflix, to name the most successful, but this article provides you with 9 reasons not to buy an IPO. For every IPO success, many more failures tend…
Asset allocation is the allocation of investments across different classes of assets. In a broad sense, this means a combination of stocks, bonds, various securities and money market instruments. Within these classes, subclasses are also distinguished: Risk and return The…
In the book, “Reducing the Risk of Black Swans”, an educational treatise on how to avoid unexpected catastrophic losses, Larry Swedroe presents the Larry Swedroe Portfolio. If you want a way to maximize returns while minimizing risk, the investment approach…
Nassim Nicholas Taleb invented the word antifragile in his book with the same name when he was looking for the opposite of fragile. Antifragile is relevant for investors. What is antifragile investing? In this article, we look at how you…
Known as the Oracle of Omaha for his investment prowess, Warren Buffett is one of the most popular investors in the world. According to Bloomberg, Buffett has amassed a personal fortune in excess of $100 billion. Want to know about…
The Gone Fishin’ Portfolio by Alexander Green is a “lazy” index diversified portfolio that allocates assets across 4 asset classes: stocks, bonds, REITs and precious metals. These 4 asset classes are divided into 10 categories: U.S. Stocks, U.S. Small Cap…
Have you ever wondered what are the best performing stock markets in the world? Almost every country has a functional stock market, but not all countries’ stock markets have been performing the same. If your great-great-grandfather had invested $1 in…
Summary and introduction: Research shows that the majority of investors underperform the broad market indices. The most likely reason is due to frequent buying/selling and behavioral mistakes. When you are trying to “outsmart” the markets, you most likely end up…
In Street Name Your capital is at risk when you are investing in equity markets, but I assume very few consider the broker as a potential risk. But the fact is that your capital might be at risk if the…
The US stock market is about 50% of the world’s stock market capitalization. If you want a diversified stock portfolio it’s pretty natural to include US stocks in your portfolio. The good news is that you as a non-US citizen…
“Compound interest is the eight wonder of the world. He who understands it, earns it….he who doesn’t, pays it” -Albert Einstein Presumably, Albert Einstein said the words above, and likewise, Benjamin Franklin said that time is money. Unfortunately, we seem…
