Investment Strategy
Asset allocation refers to the investment strategy of balancing risk and reward by determining what percentage of your portfolio or net worth to put into various asset classes. For most investors, a smart approach to asset allocation is a lot more important than individual stock selection. It's a key thing to get right, and an area where a lot … [Read more...]
The world now has $250 trillion in global debt and growing. More importantly, relative debt has also increased. Global debt as a percentage of GDP climbed from just over 280% to nearly 320% over the past decade: Chart Source: Bloomberg The next time we have a global economic slowdown, or a recession in certain key regions, debt as a … [Read more...]
The short-term interest rate set by the central bank is one of the most important numbers in any country’s economy. Interest rates dramatically affect economic growth, inflation, the housing market, equity valuations, bond valuations, and even gold prices. In addition, the interest rate yield curve is important for an economy. The yield curve … [Read more...]
Updated for 2020! Hundreds of thousands of people search for terms like "stocks to buy today" or "best stocks to buy" or "top stocks for 2020" every single month. The appeal is understandable, but most of the articles that pop up are ones quickly written by freelancers that often don't even invest in the stocks they pitch. They're just … [Read more...]
The most common concern readers express to me in my inbox is that they want to figure out how to prepare for the possibility of a stock market crash or prolonged bear market. It's a reasonable concern, given how the United States has enjoyed 9 continuous years of economic expansion, we have significant government deficits, and the stock market … [Read more...]