Tactical asset allocation (TAA) is an investment strategy that involves actively adjusting a portfolio’s asset allocation in response to short-term market conditions or economic outlook. this is an active portfolio management strategy. This might mean adjusting how much you have in things like stocks, bonds, cash, and other types of investments from time to time. […]
Asset allocation is a strategic investment approach that involves distributing a portfolio’s investments among different asset classes to achieve a balance between risk and return. Asset classes are broad categories of investments with similar characteristics and behaviors. The main asset classes include stocks, bonds, crypto and commodities. Diversification is the core principle of asset allocation.
Passive portfolio management is an investment strategy that involves minimizing active decision-making and instead seeks to replicate the performance of a specific market index or benchmark. this is the simplest way to get in to investing. The core idea behind passive management is rooted in the efficient market hypothesis, which posits that financial markets are
What is an investment portfolio? A financial portfolio is a collection of investments, such as stocks, bonds, real estate, and other assets, that an individual or organization holds with the goal of achieving specific financial objectives. Building a well-structured investment portfolio is a fundamental step in achieving your financial goals. Whether you’re planning for retirement,
Cryptocurrencies are digital or virtual currencies that use cryptography for security. They operate on decentralized technology called blockchain, which is a distributed ledger that records all transactions across a network of computers. To own cryptocurrencies or use them for transactions, you need to have a wallet, which is essentially a combination of a private key
Before we dive into bond ETFs, let’s start by understanding how regular bonds and bond ETFs compare in terms of their advantages and disadvantages. Bonds vs Bond ETFs for investing Bonds are like IOUs issued by companies, governments, or other organizations. When you buy a bond, you’re essentially lending money to the issuer in exchange
Bonds are debt securities or fixed-income investments that represent a loan made by an investor to an issuer. Bonds are considered a relatively safe investment compared to stocks because they promise regular income and a return of principal, assuming the issuer does not default. that being said, someone actually why invest in bonds? 1. Steady
The foreign exchange market, or forex for short, is the world’s largest financial market. With trillions of dollars being traded daily, it presents a vast opportunity for potential profit. But before you dive into this exciting arena, selecting the right forex broker is crucial. A good broker can be the difference between a smooth, successful
Bond duration is a measure of the sensitivity of a bond’s price to changes in interest rates. Bond prices and interest rates have an inverse relationship. When interest rates rise, the prices of existing bonds fall, and when interest rates fall, bond prices rise. a bond with a shorter duration is less sensitive to interest
Bonds are financial instruments that represent debt or a promise to repay borrowed money with interest at fixed intervals. They are typically issued by governments, corporations, or other organizations to raise capital. There are several different types of bonds, each with its own characteristics and features. the main 2 types are government and corporation bonds.
Bonds play a significant role in the composition of most portfolios. so what are bonds? Bonds are a type of financial instrument that represents a debt obligation. They are commonly used by governments, corporations, and other entities to raise capital. When you purchase a bond, you are essentially lending money to the issuer in exchange
We discussed the concept of diversification and the importance of diversifying your investments. In this post, we will delve into our approach to investing. Top down and bottom up approach are two contrasting investment approaches used by investors and portfolio managers to make investment decisions. These approaches differ in their focus and the order in
Portfolio diversification is a strategic approach to investing that involves spreading investments across various financial instruments, industries, and other categories to minimize risk and maximize returns. By holding a mix of assets, investors can protect themselves against significant losses from any single investment. In this article, we will explore what is portfolio diversification, its key
Investing can be a powerful way to build wealth over time, but for beginners, the landscape can seem complex and daunting. This guide will break down the fundamentals of investing, including both active and passive strategies, to help you how to start investing in stock market. Understanding Investment Basics What is Investing? Investing involves putting
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. They are managed by professional fund managers or investment companies. Similar to ETFs, mutual funds contain a multitude of stocks within their portfolio. However, there is a distinction: while ETFs determine their
Compound interest is a fundamental concept in the world of investing, often referred to as the “eighth wonder of the world” by those who understand its power. It’s a powerful tool that can significantly enhance the growth of your investments over time. In this article, we’ll explore what compound interest is, how it works, and
Inflation is a fundamental concept in economics that profoundly influences various aspects of our lives, from the prices we pay for goods and services to the decisions made by policymakers and investors. In this article, we’ll delve into the details of what is inflation, causes, types, effects, and how to measures it. What is Inflation?
In a world of ever-changing economic conditions, investing has become more than just an option – it’s a critical tool for building financial security and achieving your long-term goals. Whether you’re a professional investor or just starting out, understanding the importance of investing is key. In this article, we are going to learn what is
Cryptocurrencies have revolutionized the way we perceive and interact with money. Behind the scenes of this digital financial revolution lie several foundational concepts that form the backbone of cryptocurrencies. In this comprehensive guide, we will delve into the fundamental principles of cryptocurrencies, exploring topics such as ledgers, hash functions, blockchain, digital signatures, private and public
Forex, short for foreign exchange, refers to the global marketplace where currencies are traded against each other. It’s the largest and most liquid financial market in the world, with trillions of dollars being traded every day. We know that every country across the globe possesses its unique currency, such as the United States with the
The stock market is divided into sectors to categorize companies based on the industry or business they operate in. Within each sector, there are multiple industries. The Global Industry Classification Standard (GICS) is a widely used system for categorizing companies into sectors and industries in the global stock market. GICS was developed jointly by MSCI
