Active vs passive investing
Many have differing views on whether active or passive investing is the most effective, so do your homework and know what will work for you and your financial goals. QUOTE “If you aren’t willing to own a stock for ten years, don’t even think about owning it for 10 minutes.” Warren Buffet Which one should […]
Asset classes explained: definition, types and examples
Understanding how different asset classes perform in isolation and relative to each other is a linchpin of successful long-term investment. QUOTE “It is not prudent to attempt to switch and swap asset classes based on short-term market predictions.” Richard Ferri The main asset classes you need to be aware of are stocks (equity) and fixed […]
Investing in big vs small companies
There are some important differences between big and small companies that present both opportunities and risks when investing in their stocks. Investopedia “Smaller companies have greater growth potential and tend to offer better returns over the long-term.” Small caps vs large caps But If the goal of investing is to generate a return, why don’t […]
How to include systematic risk analysis in your investments
Systematic risk has huge implications for your wealth and demands close attention. In essence, it refers to the risk that pervades the entire economy and all financial markets – meaning it affects every investor. Unsystematic risks can be diversified through portfolio management techniques, but systematic risks cannot be fixed with diversification because it affects all investments. This […]
Pre-market and after-hours trading
Have you ever wondered how to capture those big moves in the stock market that happen before and after regular trading hours? Earnings and big announcements often happen when the market is closed so trading pre-market or after-hours offers new potential opportunities. Big ideas What is pre-market trading? Pre-market trading is the extended trading session that […]
Investing in index funds: What are index funds and how do they work?
Confused about index funds and their role in the investing world? You’re not alone—many beginners grapple with the overwhelming jargon and concepts. This in-depth guide will both clarify the concept of index funds and enhance your investment knowledge. Quote “Don’t look for the needle in the haystack. Just buy the haystack!” John C. Bogle Big […]
What is a bear market?
Big ideas What is a bear market? A bear market is a period of time in which the stock market is in decline. What bear market means is investors need to act carefully. There will be some stocks that rise during a bear market and there will be days and weeks when the stock market […]
Dividend Reinvestment Plans: What DRIPs are, how they work and how to set up a good reinvestment plan
Dividend reinvestment plans (DRIPS) are one of the most straightforward ways to accumulate long-term wealth – if you can stick with it for long enough. Big ideas QUOTE “The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett Dividend reinvestment plans are for investors that want to […]
What is liquidity in financial markets & business?
Liquidity is a core concept in both business and finance that refers to available cash or easily convertible (“liquid”) assets. Businesses and marketplaces reduce risk when they hold more liquid assets. QUOTE “Liquidity is essential in business. So many businesses fail because of a failure to retain liquidity.” Hendrith Vanlon Smith Jr, Author Any commercial […]
Different types of investments to include in your portfolio
There are 100s of types of investments, and all fit into what is known as asset classes. Knowing the difference between them and when to own each can significantly enhance your investing portfolio. Big ideas QUOTE “You should have a strategic asset allocation mix that assumes that you don’t know what the future is going […]