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…
The two easiest and most commonly recommended portfolios for investors and newbies are the two and three fund portfolios. These are among the lowest cost and simplest broad market portfolios that you could own. The two-fund portfolio is by far the easiest (it could even be one fund depending upon 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…