Why Investors Must Not Mix Politics With Investing

Politics plays an integral part of our lives everyday.However when it comes to investing, we are better off ignoring politics in making our investment decisions. Though politics is a necessary evil in all countries, markets are much bigger than politics and generally markets can overcome political shocks and surprises. Political events may create short-term volatility in the markets …

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The Vanguard 2016 Index Chart (Australia Edition): Invest for the Long-Term

Yesterday we looked at the importance of long-term investing using the UK edition of The Vanguard 2016 Index Chart. The Australian edition of The Vanguard 2016 Index Chart below shows how long-term investing produces the most returns with equity investing: Click to enlarge A A$10,000 investment in 1986 would have produced an annual return of 9.6% beating …

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The Vanguard 2016 Index Chart Shows Why Investing for the Long-Term is Important

One of the critical factors for success in equity investing is investing for the long-term which can considered as 5 years of more. Holding solid high-quality stocks for 10 years or even decades can create fabulous wealth. The UK edition of The Vanguard 2016 Index shows the power of long-term investing and diversification: Click to enlarge …

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The Futility of Savings When Interest Rates Are Low

Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” Compounding simply implies earning interest on interest to multiply one’s cash savings. The power of compounding works well only when the interest rate offered on a savings account is decent. …

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On The Issue Of Home Bias Of Stock Market Investors

One of the factors that affects investors in the construction of a equity portfolio is the issue of home bias. Because of this issue investors to tend to avoid investing in foreign stocks. An investor building a globally diversified portfolio must allocate assets based on the market-cap weighting of each country in a broad global …

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Why Invest in Stocks of Auto Parts Suppliers

One of the sectors that investor can consider investing in is the auto parts sector. Parts suppliers supply all the parts needed in building an automobile. In addition, many also supply the multitude of bells and whistles that go into a car. For example, the latest car models have wifi connectivity for internet access and …

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