Investing can be a powerful tool for wealth creation and financial security, but it requires careful consideration and informed decision-making. One crucial aspect of successful investing is understanding asset classes. Asset classes serve as the building blocks of investment portfolios, providing diversification, risk management, and potential returns. In this article, we will explore why knowing about asset classes is essential for investors looking to maximize their investment potential.
Asset classes are broad categories of investments that share similar characteristics and behave in a similar manner within the financial markets. The...
If you own a bond - you are lending money to the issuer. You are mostly concerned about the company’s ability to repay your principal and make your interest payments on time. Your perspective as a bondholder is very different to that of a stockholder. Today we highlight the differences.
Some Stockholders like to see robust dividend payments and share buybacks. This puts more money in the pocket of shareholders. In contrast, higher dividend payouts and stock buybacks are generally less attractive to bondholders, because it means less profits are retained in the company and the buffer between free cash flow and debt repayments becomes lower...
Bonds and Real Estate are two unique investment options allowing you to diversify your portfolio while proving to be a relatively safer investment than stocks, cryptocurrency, and some other assets. Both bonds and real estate are steady investment options with relatively low volatility allowing you to invest worry-free while benefitting from potential capital appreciation and predictable income.
Bonds Investment and Benefits
A bond is a debt investment wherein you (the bondholder) gives a loan to the bond issuer in return for a promise to receive your principal along with interest over a specified time. Bonds can be issued by the...
When my clients ask me what I think about recent developments, I remind them that nothing has changed. I tell them that the same investment principles that I have reminded them of for years still apply. These are some that readily come to mind.
The first one is to know your financial...
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