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...
Doing something different is necessary to outperform the stock market average. And, one key indicator that investors use to gain an edge is short selling. In this post, we’ll delve into what short selling is, how it can be an indicator of market sentiment, and what the current climate of short selling tells us about the potential path of the...
Public company ownership is represented by shareholders who acquire shares actively traded on recognized stock exchanges. The intricate dynamics of ownership in public companies, which can often be multilayered and complex, offer a practical subject for potential investors and business enthusiasts alike. Before we begin, let’s put your financial knowledge to the test. Try out our free financial literacy quiz and see...
In the vast universe of investing, different strategies cater to different types of investors. This post delves into contrasting investing philosophies, shedding light on the approach of a legendary investor, Warren Buffett, and juxtaposing it with the typical strategies employed by pension funds. Before we begin, let’s put your financial knowledge to the test. Try out our free financial literacy quiz and...
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...
