Investment Strategy
When it comes to determining a fair value for equities, interest rates are an important variable to consider. As rates rise or fall, they affect the appropriate valuations for different stocks in different ways. This article provides a brief overview of how that works. The Equity Risk Premium Equities are not priced in a vacuum; they are … [Read more...]
Many investors prefer not to hold any individual stocks, and instead enjoy the instant diversification of exchange-traded funds (ETFs). Additionally, even if you do hold individual stocks like me, ETFs are still great for added diversification. I've personally always used a combination of stocks and ETFs in my portfolio, because they complement … [Read more...]
This article provides a brief overview about investing in bonds and then dives into some potential trouble areas in the bond market. I read thousands of emails from my readers, and one of the key themes I see is that people are concerned about the next stock market crash, and perhaps rightly so. By many measures we have high stock valuations in … [Read more...]
Readers occasionally ask me what I think the best investing books are, or what I recommend reading. The truth is, while I've read a lot of investing books and there are tons of good ones, the most powerful resources I've found are online. Compared to other things I've read, the free writings of billionaire investors have been the most useful. … [Read more...]
This article provides three diversified investment portfolios based entirely on index ETFs for passive, hands-off investors. Personally, I find that a combination of index funds and individual stock selections works best for me, and is what I often recommend. Between one-half and two-thirds of my net worth is in index funds while the rest is in … [Read more...]