Wealth Building is simple, invest early, invest often, invest consistently, and stay the course. The reality with building wealth is incredibly simple – compounding interest and time. If we continue to do invest in index funds and take advantage of tax-free investment options, wealth building is simple! Imagine getting 8% 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…
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…
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…
Sometimes when we make investment decisions, we think we should try and predict the future. We want the best stock returns for a variety of reasons from things like retiring early or using the funds to purchase a new car. And if we are trying to predict the future, we’ll 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…
Diversification is a powerful thing in investing. The main idea behind it is simply that, you don’t put all your eggs into one basket. So, if one of the baskets has a hole, it doesn’t screw up your retirement plan. In the same vein but slightly more technical, diversification is Read more…
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At its core, this High-Risk Strategy is a risk-parity strategy. Both funds in this strategy use a 3x leveraged ETF[1]. A leveraged ETF is a fund that uses financial derivatives and debt to amplify the returns of an underlying index. — Investopedia.com For a 3x ETF, if the underlying index Read more…