Naive 1/N Portfolio vs. Sophistication and Optimization
Jul21

Naive 1/N Portfolio vs. Sophistication and Optimization

Optimal diversification is one of the key insights of modern portfolio theory, however, due to estimation errors, theory-based portfolio strategies are not as good as one once thought; under some circumstances, the difference between sophisticated models and naive strategy is not statistically significant. Naive diversification is instinctive common sense division of a portfolio, whereby an investor invests in a number of assets in...

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9 Best Devices To Be Trading With
Jul01

9 Best Devices To Be Trading With

Go, go, go! This is the rushed mindset that our modern-day society has grown to encompass as the accepted way we live our daily lives. The thirst for success and competitive traits that lie within human nature have led to a ceaseless race  to the finish line. Everything that is constructed in today’s market is molded around the concept of efficiency and being easily accessible. In relation to investing, this is no different....

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Tail Risk Hedging: Protecting Portfolios Against Extreme Negative moves
Jun23

Tail Risk Hedging: Protecting Portfolios Against Extreme Negative moves

In the Foreword of David Swensen (2009), Charles Ellis commented that Yale was good at playing defense, because the endowment was built to withstand the inevitable storms that face capital markets. This resiliency was recently put to a severe test, as the Yale endowment lost 25% of its value in the year ending June 2009. This has been termed a “tail event,” where the returns were at the extreme left tail of the endowment’s return...

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The Importance of Information Security When it Comes to Your Investments
Jun12

The Importance of Information Security When it Comes to Your Investments

The military, healthcare networks, the government, corporations and financial institutions are all obsessed with information security – and rightly so. Malicious attacks or accidental leaks can lead to catastrophic losses in sensitive data, customer information, proprietary information and financial data. But it’s not just huge entities that need to worry. Anyone involved in stock investing should be concerned with...

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Target-Date Funds: Find a More Secure Path to Retirement
Jun09

Target-Date Funds: Find a More Secure Path to Retirement

Asset allocation determines the blend of investments in each portfolio; the process seeks to maximize value based on one’s time horizon and tolerance for risk. A target-date fund offers specific asset allocations and investment selections for specific objectives. It automatically resets the asset mix of equities and fixed income assets in its portfolio according to a time frame specified by an investor. Target-date funds are grounded...

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4 Simple Yet Important Investment Tips for Beginners to Keep in Mind
Jun06

4 Simple Yet Important Investment Tips for Beginners to Keep in Mind

Investing in the stock market does not have to be intimidating and overwhelming. You don’t need to be an expert, and you don’t need to have a real strategy. You only really need to follow two concepts: consistency and patience over time. These two foundations are the basics of investing for dummies and, if followed, everyone can make money over time in the stock market. Follow this guide. Don’t try to time the market...

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