As the thrill of quick gains often grabs headlines, passive investing emerges as the silent giant, embodying the virtue of patience in a race paced by speculation. It's the strategy that champions the adage "slow and steady wins the race," turning a deaf ear to the siren calls of market timing and rapid trading. Surprisingly, passive investing often beats the...
It's a common misconception that average investors will earn an average rate of return. Unfortunately, the reality is far from this ideal. Multiple factors contribute to the disconnect between the expected return and the actual return that the average investor achieves. The average market return can be achieved by investing in passive index funds. Surprisingly, the returns of...
In the ever-evolving world of investment strategies, it’s easy to get lost amidst the myriad of complex theories and tactics touted by experts. Yet, time and again, history has shown that there’s profound strength in foundational principles. At the heart of these principles lies the concept of buy-and-hold investing. This approach not only champions the virtue of patience but...
Today, there’s frequently a demand for investment strategies that align with an investor's values, financial goals, and risk tolerance. As Environmental, Social, and Governance (ESG) considerations become more prominent, so does the idea of blending these considerations with historically lucrative dividend strategies. This is what our model portfolio achieves. In this post, we'll unpack the criteria for selecting this portfolio...
With Johnson & Johnson’s recent announcement about spinning off a significant portion of its stake in Kenvue, investors find themselves at a pivotal crossroads. This strategic move marks a major shift in the corporate landscape, offering both opportunities and challenges for those holding J&J shares or considering an investment in Kenvue. The spin-off is not merely a corporate restructuring but...
In the era of digital trading platforms and zero-commission brokers, investors have never had it easier. With tools at our fingertips and little to no fees, we have the luxury of making stock market investments efficiently. However, with all these resources, a staggering number of both novice retail and seasoned professional investors still fall short of outperforming passive benchmarks. How...
Should a market-neutral fund be part of your investment portfolio? The answer depends on your investment objectives, risk tolerance, and portfolio management style. But, while most investors should avoid market-neutral funds, others may think that market-neutral funds are a good way to achieve the best risk to return trade-off. This post will discuss some theoretical concepts that surround market-neutral funds...
Investing can be complicated, and our emotions often make it even more challenging. Investing bias will alter our investment decisions, usually for the worse. So, in this post we’ll discuss six practical ways to reduce investing biases, making your investing journey clearer, calmer, and more successful. Before we begin, let’s put your financial knowledge to the test with our free financial...
When some investors view the trading volume of most exchange-traded funds (ETFs), they may be shocked to see such low volume trading on exchanges. They may take this as a sign the ETF has low liquidity. However, an ETF’s low trading volume on exchange isn’t an indication of its total liquidity. In fact, liquidity of the portfolio underlying an...
Investing in bonds can be a lower-risk way for investors to diversify their portfolios and gain exposure to the fixed income market. Bond funds and bond ETFs offer a convenient way for investors to gain exposure to the bond market without purchasing individual bonds. However, choosing the right bond ETF can be challenging, as there are many options available in...
