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...
Simple can be considered as boring, but sometimes simple is exactly what we need. I recently met with a prospective investor (virtually of course) who had gotten badly burned in the stock market. After licking his wounds, he decided he was ready to invest again, but after his bad...
Mar 28, 2021
According to FSC data, the total assets of the private pension plan industry as of September 30, 2020 stood at J$639.29 billion. 37% of this J$639.29 billion is invested in “pooled investment arrangements” (I.e., mutual funds or unit trusts). This is the single largest concentration in any...
Mar 21, 2021
All great relationships begin with trust and understanding. This applies in both personal and professional situations. Choosing a financial advisor for investment guidance should also adhere to this principle. The investor/advisor relationship should be one where the investor trusts the...
Mar 14, 2021
You have probably heard the phrase that interest rates and bond prices move in opposite directions. That is, as interest rates rise bond prices are expected to fall and vice versa. However, since the start of 2021 we have observed a steady rise in international rates, yet corporate bond...
Mar 07, 2021
Does it make sense to hold your investment portfolios with different financial institutions in case one runs into trouble? In the world of investing, the ways in which you can diversify are endless- across currencies, countries, industries, asset classes and more. When done in a structured...
Feb 28, 2021
As investors we seek to make the best investment decisions with the intention of maximizing our returns. However, the reality is that with so much information and so many investment options available, it can be difficult for an individual to sort through this information to make an...
Feb 21, 2021
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