When it comes to investing, it's easy to overlook the impact that small differences in returns can have on your financial future. After all, a 1% difference in the rate of return might seem trivial when considered in isolation, especially when compared to the effort involved in moving your investments.
However, over time, this seemingly minor difference can lead to significantly different outcomes, thanks to the power of compounding. Understanding this concept can be the key to making more informed investment decisions and ultimately achieving greater financial success.
What Is Compounding?
Compounding is the process where the...
In the ever-changing landscape of the financial market, investors are often faced with the challenge of navigating through the complexities of various investment options. In last week’s article, Eugene mentioned the critical concept of bond duration, and noted that investors should pay keen attention to this when looking to build a solid portfolio. With the Federal Reserve signaling its intention to reduce interest rates, the concept of bond duration has become even more important for investors to grasp as it will help in making solid investment decisions to maximize yields and reduce risk.
But what exactly is bond duration and why does it...
Just as hurricane season acts as a reminder of the need to protect our homes from turbulent weather, each year investors face a familiar challenge: how to protect their portfolios amidst potential financial storms. Much like preparing for severe weather, smart investing involves fortifying...
Jul 08, 2024
Fear of Missing Out commonly called FOMO is a slang term generally used to describe the emotion and distress persons feel when they miss out on experiences that others may be having. This feeling tends to arise especially when what is being missed is perceived as an enjoyable or memorable...
Jul 01, 2024
In last week’s article, Eugene spoke about the Federal Reserve's recent decision to maintain its benchmark interest rate and reduce interest rate cut forecasts for this year. But what does this mean for investors and global bond holders?
For the remainder of 2024, the global bond market...
Jun 24, 2024
In the wake of the Federal Reserve's recent decision to maintain its benchmark interest rate at a two-decade high of 5.25% to 5.5% and reduce rate cut forecasts for this year, the path to policy normalization in the United States remains fraught with uncertainty. The decision, reached by...
Jun 17, 2024
Invest in local currency and earn foreign currency? What sorcery is this?! Investing in assets that pay interest in a stronger currency while the principal investment is in a weaker or more volatile currency can be an effective investment strategy to hedge against devaluation risks- no...
Jun 10, 2024
The “Higher interest rates for longer” phenomenon in the US has created a brief window of opportunity for investors to lock in attractive yields that will outlast the current cycle. Investors can enjoy higher returns even when interest rates decline. On Friday May 31st, 2024, the 2-year US...
Jun 03, 2024
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