Exchange Traded Funds are the ideal vehicles to participate in the stock market
Your answer might be a clear “Yes,” in case you have loads of money and zero concerns about it—EVER—being depleted. Congratulations! But in all other cases, I would recommend that you get yourself informed about how money (in general) and the stock market (in particular) work.…
The other day, a friend of mine was slightly amused after I bombarded him with reasons why he should always check management fees before selecting a Mutual Fund or (even better) an ETF. His words: “C’mon, what difference does a management fee…
Schwager takes aim at the most perniciously pervasive academic precepts, money management canards, market myths, and investor errors. Like so many ducks in a shooting gallery, Schwager picks them off, one at a time, revealing the truth about many of…
Wall Street Analysts are bad at stock picking: Analysis of all sell and buy recommendations in 2003 showed that the portfolio with negatively viewed stocks gained 53.5% (over two years), more than 75 percentage points better than the market. Investing, contrary…
… is not really a secret at all. Nevertheless, still not enough of us are doing the obvious: Investing in an asset class that has the highest chance of beating the inflation rate. Inflation is the opposite of a gift that…
They are Exchange Traded Funds. Huh? Simply, an ETF is an investment fund that is traded on a stock exchange. Although the ETF is similar to a mutual fund (or unit trust) and comprised of many individual investments such as stocks, bonds, or both,…
Or why we adhere so strongly to our beliefs. One culprit is what the rule of consistency describes: a powerful force that compels us to act in a way that is consistent with our past behavior (this rule is extensively…
When it comes to mathematical functions, the human brain can easily comprehend “Linear Function or Simple Interest”, but we are genetically unfit to comprehend “Exponential Function or Compound Interest” and its massive impact years down the road. When it comes to interest…
Have you also observed that many people behave as if not all dollars are created equal? By assigning relative values to different moneys that in reality have the same buying power, they run the risk of being too quick to spend,…
Irrationally wanting things to stay the same, also called inertia. We do this in part because we want to avoid costs, even when they’re offset by a larger gain, a process psychologists call “Loss aversion”. You hold onto a mutual fund…