Or an emerged market?
In our initial look at emerging markets, we saw that Brazil is included.
And if we look at its overall market characteristics, Brazil probably should be classified as an emerging economy. But in other aspects, perhaps not.
Consider today’s slightly funny example. (more…)
Emerging market investments can add value to one’s portfolio.
On the one hand, emerging market assets provide potential diversification benefits that help lower overall portfolio risk.
At the same time, emerging markets offer potentially higher returns than investments in developed markets. This helps enhance overall portfolio expected returns.
Lower portfolio risk, higher expected returns, count me in!
Well, like any investment, there are always a few strings attached. (more…)
Emerging markets are popular investments for many investors.
Why?
Emerging market investments may aid in reducing portfolio risk through enhanced diversification. At the same time, there is also the potential for higher returns in less developed markets.
Today we look at what constitutes an emerging market. (more…)
I read an article entitled, “Are You Saving Too Much for Retirement?”
I think it is a good article to discuss. No, the article itself is not good. Far from it. Rather this type of article is good to discuss. A big difference. (more…)
Behavioural finance (a.k.a. behavioural investing) examines how psychological factors impact an individual’s investment decisions.
One likes to imagine that investors are rational creatures, but that is often far from the case. I find behavioural finance very interesting in how it explains certain, less logical, investing actions.
Today a look at how investors often keep their losing investments longer than they should. (more…)
Within investing theory, there is a lot of consideration to the Efficient Market Hypothesis (EMH).
That is, how efficient are the investment markets and can smart investors exploit any inefficiencies to profit.
Phil Maymin, an Assistant Professor of Finance and Risk Engineering at the Polytechnic Institute of New York University, provides an interesting take on market efficiency in the video below. (more…)
I have previously written that it is questionable whether professional asset managers can consistently beat their markets.
As such, I normally recommend passive investing for most individuals.
But I did recently read of one way to beat the market. (more…)
My investment philosophy is quite simple.
Most investors should utilize a passive investment strategy, with an emphasis on cost minimization and optimal portfolio diversification.
We have covered my reasoning for this in many posts leading up to today.
In short: (more…)
A company’s market capitalization (commonly shortened to “cap”) is found by multiplying the current share price by the number of shares outstanding.
Market capitalization is useful in comparing companies of similar size.
It is also used as a tool by mutual funds when determining investment style.
So what are the different market capitalization segments? (more…)
Investor psychographic models can help investors determine their own risk tolerance.
Pyschographics refers to the description of an individual’s psychological characteristics. It attempts to classify investors based on their personality traits.
There are a variety of models in use today. I suggest you look at a couple of models to better understand your own investor profile.
In this post, we shall look at the Bailard, Biehl, & Kaiser Five-Way Model. (more…)
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