The appointment of a new Chief Executive Officer (CEO) is a pivotal event for any publicly listed financial corporation, and its effects may send ripples throughout the financial markets. Investors should closely monitor leadership changes as they can significantly impact a company's stock and bond performance.
To quote the legend Bob Marley there seems to be “so much trouble in the world”. Between newscasts, podcasts, talking heads and social media there is no doubt there has been a lot of noise in the market both globally and locally. When investors get caught up in the noise many may panic sell or divert from their financial goals and plans. Understanding your risk profile, asking the right questions, investing in line with the risk and return that suits you, and ignoring noise will help you achieve long-term investment success.
An investment in Real Estate can provide both income and capital gains to the investor. In analyzing the returns on their investment portfolio, many believe that Real Estate as an asset class has shown to be one of the most lucrative over the long term. It is often said that “You cannot lose with brick and mortar” and that the best way to accumulate wealth is through real estate. Real estate can be a great investment, but as with all asset classes, understand all costs associated and avoid overconcentration.
The first half of 2023 has witnessed a robust start to the year that sets the stage for an optimistic outlook for the second half. Despite the lingering scars from the challenges of 2022 as the U.S. Federal Reserve raised its policy rate by an aggressive 425 basis points (bps) or 4.25 percentage points to cool red-hot inflation, the market gains achieved so far in 2023 signal a promising trajectory. With a more favourable economic landscape, improved monetary policy outlook, and positive momentum, the groundwork has been laid for a potentially prosperous second half of 2023.
What is noise in the market? In this context, noise refers to information and opinions on a company you are invested (financially or emotionally) in. It includes every tweet, post, click bait news article and blogger that is has something to say on the company you are invested in. “Noise” is usually unspecific, fails to describe a specific problem, uses sensationalist headlines, and compiles a series of facts without a clear implication, conclusion or risk identified.
The first six months of the year have passed, and the investment landscape continues to be volatile. The days of setting it and forgetting it regarding your portfolio are long over. Many people start a new year with new resolutions and financial goals. As we enter the second half of the year, now is a great time to review your investment portfolio and take steps to rebalance if necessary.
Your financial review is personal and will not be the same as others. However, there are a few key steps that any astute investor can follow to help with their assessment.
Throughout the life of a fixed income asset, the interest payment terms and schedule of payments are usually known. These are stated at the inception when the asset/investment is first being issued. The maturity date and conditions of maturity, if any, are also usually stated upfront. Investors holding fixed income assets usually are aware of the maturity dates of these investments when they first make the purchase.
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.
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.
