When discussing share investing, I often advocate for using several low-cost, rules-based, evidence-backed indexing strategies. While most are familiar with traditional market cap indexing, I thought it would be worthwhile to explore alternative methodologies and when and how to use them Traditional market cap indexing The first retail index fund was launched by Vanguard in …
Borrowing to invest in property is a popular investment strategy in Australia. It’s often seen as less risky than borrowing to invest in shares. But we should not be so quick to discount the strategy of borrowing in the share market. If implemented correctly, it can be very effective. The power of gearing isn’t exclusive …
The price of Bitcoin has risen 64% in 2024 so far. That’s after rising 156% in 2023! Last week, a client brought to my attention that the CEO of the largest asset manager in the world, Blackrock, suggested that crypto is a good long-term store of value. He likened it to digital gold. This might …
The stock market has kicked off the year on a positive note, reaching record highs in the US. While this may initially appear promising, it’s essential to consider potential risks that investors need to be mindful of. On the flip side, I identify promising investment opportunities amidst these considerations. Past performance should guide decision-making The …
Navigating the stock market in the coming years may prove challenging, primarily because markets need to adapt to higher interest rates. Whilst there are significant risks to avoid, I also believe there are promising opportunities worth considering. Do these 3 things to successfully invest in stock markets To maximise your investment returns in the stock …
Exchange Traded Funds (ETFs) have gained significant popularity in the past 8 years, with total investments in Australian ETFs soaring from $20 billion in mid-2015 to over $150 billion by mid-2023, representing a remarkable growth rate of more than 27%. This surge can be attributed to the compelling advantages ETFs offer over traditional managed funds. …
Share markets have been highly volatile over the past couple of years. Markets fell by circa 30% when Covid hit in March 2020 and then proceeded to boom until the end of 2021, fuelled by government stimulus and zero interest rates. However, markets fell by circa 20% in 2022 after central banks aggressively hiked rates. …
We are all aware that central banks around the world have been hiking interest rates to reduce inflation back to normal levels. The US economy, and particularly the labour market, have been more resilient than most expected. This means the US central bank might have to hike interest rates higher than in other jurisdictions to …
I’m a big advocate of value investing. If you buy high a quality investment for fair price and hold it for the long run, you can’t help but make a lot of money. But if you can buy the same quality asset cheaply (below its intrinsic value), then it’s likely that you will make even …
Calendar year to date, the stock and bond markets have produced some of the worst returns on record, which is unusual because bonds and stocks are typically negatively correlated. In fact, this has only happened two times over the past 96 years, as illustrated in this chart. Even gold, commodities and property have lost value …
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