Bonds are not as bad as they seem I see a lot of social media posts that say bonds are drags on accounts and will only lose value over the next decade or so. It’s true that we have been in a long term bull market for the last 40 Read more…
Wealth Creation in the US Stock Market Movies like the Wolf of Wallstreet glamorize the normal dealings of investment firms and active managers. They paint them as wildly successful entrepreneurs and sometimes even horrible scam artists, or a combination of the two. However, the reality is a bit different. It’s Read more…
Stocks for the long run is almost always a good idea, or is it? It’s generally a good bet that being in stocks will provide inflation beating returns. A lot of papers have studied this phenomenon in the past and concluded that this. For example, Vanguard has looked at Read more…
Vanguard Research This paper by Vanguard seeks to outline and determine if the US market will continue to out preform for the next decade. As we enter 2021, it’s important to guide our future expectations about returns. There are some ways in which we can predict future long term Read more…
The shortest summary of A Random Walk Down Wall Street: TLDR: “Market prices are so efficient that normal investors are better off buying and holding index funds than attempting to buy and sell individual stocks or actively managed funds.” A somewhat longer summary: A random walk is accepting that Read more…
Is day trading your dream job? A study from the University of San Paulo Brazil by Fernando Chague, Rodrigo De-Losso, and Bruno Giovannettisays that the vast majority of day traders lose money in the equity markets. Some of the most popular finance websites out there promote the idea that day trading Read more…
Most investors tend to exhibit certain trends when they invest and one of the most observable ones is home country bias. Home country bias is when an investor is over exposed to domestic equities in their investment portfolios. Let’s look at how this happens, the pros, cons, and how to Read more…
Across this website, I’ve urged people to use diversification in their asset allocations, explained why diversification is a free lunch, and why you should have international diversification. But fortunately, there’s a few really easy ways to get all the diversification you could need in your investment portfolio as there’s a Read more…
Many American based investors have a common belief that investing in American stocks gives them enough world diversification because American companies do business overseas. Or even worse, they are using recency bias as an excuse to not invest directly in international stocks – because the American stock market has outperformed Read more…
Asset allocation is perhaps one of the most important concepts investors and financially savvy people can know. You should be asking yourself, two questions. One, how old you are? Two, what your risk tolerance is? And you should be asking yourself these questions when you first create a portfolio for Read more…