Dollar Cost Averaging (DCA) is an investment strategy by which you invest little by little in each period instead of a lump sum in one shot. By investing small amounts say each month over many years one can reduce volatility and also the risk of heavy losses. Over time small amounts tend to benefit from …
Continue reading ‘How NOT to Demonstrate the Power of Dollar Cost Averaging’ »
The S&P 500 has shot up by 13.07% so far this year, making it one of the best start of the year in recent history. Many of the developed European markets are also up nicely year-to-date with the DAX gaining over 9%. It remains to be seen if the indices can add on to the …
Continue reading ‘Knowledge is Power: Tech Innovation, Defensive Investing, Why Britain Edition’ »
On of the simplest and easiest ways to reduce risk in a portfolio is diversification. Holding assets spread across different types, classes, countries, etc. not only reduces risks but also provides a cushion to a portfolio when markets head south as we witnessed in December 2018. The following chart shows the importance of diversification as …
Continue reading ‘Asset Class Performance Chart 2005 Thru 2018’ »
Australia is known as the “Lucky Country” since it hasn’t had a recession for the highest number of years. In addition the country is also lucky because it is blessed with rich natural resources. Some of the other countries without recessions in many years are shown in the chart below: Click to enlarge Source: RFE/RL …
Continue reading ‘Countries Without Recessions For The Longest Time’ »
The Shanghai Composite is leading global indices this year with a jump of over 21% so far. India is up by over 5% while Brazil has increased by a decent 12% year-to-date. In developed Europe, DAX is up by over 10%. It remains to be see if the rest of the year adds more returns to …