Money Archives

The Best Investments For Your Risk Tolerance Level

What is a risk tolerance level? What types of investments are best suited to you? Your risk tolerance level measures how comfortable you are with risk and determines the stocks you should invest in. If you’re nearing retirement (or you want to sleep well at night), you might choose investments with “Low” and “Moderate” levels of risk. If you still have many working years ahead of you (or you’re a thrillseeker who’s willing to suffer sleepless nights), then you might opt for assets with “High” risk levels. Keep reading to find out your risk tolerance level and recommended investments.

Guaranteed Basic Income: Creating A Better Tomorrow

What is guaranteed basic income? What are the objections to universal income? Guaranteed basic income is a practice where the government pays each citizen a bare minimum wage every year. The hope is that the guaranteed income will remove the constant worry for survival that leads to depression. Critics have objected on the grounds that it will be very expensive and will make people lazy. Read on to learn more about the advantages and criticisms of guaranteed basic income.

Why Having No Hope for the Future Causes Depression

How does having no hope for the future cause depression? Why is it so important for you to feel in control of your life? Having no hope for the future makes it impossible to plan ahead since you can’t picture a better and secure life for yourself. This can cause depression to set in. Being able to envision an attainable, happy life is very important because, without it, you lose control over your life. Loss of control naturally triggers depression. Read more about how having no hope for the future leads to depression.

The Risk Parity Strategy: How to Reduce Risk

What is the risk parity strategy? How can this approach reduce investment risks? The risk parity strategy is an approach to portfolio construction that promises reduced risk. Unlike other theories, the risk parity strategy focuses on risk allocation, prioritizing low-risk assets. Find out more about the risk parity strategy below.

The Housing Bubble of 2008: What Happened?

What was the housing bubble of 2008? What caused this devastating financial crash? The stock market crash and housing bubble of 2008 saw a huge decline in house prices from the 2006 peak. The fallout was huge, with many big financial institutions facing considerable losses. The causes are debated, but essentially too many people took on loans they couldn’t afford, leading to an inevitable crash. Here’s what happened during the housing bubble of 2008.

Autopilot Investing: The Right Way to Invest

What is autopilot investing? Why is it the best investment method, according to Burton Malkiel? Autopilot investing involves buying broad index mutual funds or exchange-traded funds, rather than buying active individual stocks. This is Burton Malkiel’s preferred method of investing, as he advises building a portfolio around index funds. Learn about autopilot investing below.

Historical Stock Market Returns: What You Can Learn

What are some examples of historical stock market returns? What can you learn from these examples? The best way to understand returns at work is to examine examples of historical stock market returns. Looking at examples of historical stock market returns will show you how prevailing market conditions affected stock market returns. Keep reading for a guide to historical stock market returns.

How Are Resources Allocated in a Market Economy?

How are resources allocated in a market economy? What is the advantage of price-based resource allocation? In a free-market economy, resources are allocated by prices. In this way, a market economy is self-regulating, allowing real-time coordination across millions of goods and services, without any central authority knowing and setting all the prices. In this article, you’ll learn how prices allocate resources and how supply and demand respond to prices.

The Efficient Market Hypothesis: Beating the Market

What is the Efficient Market Hypothesis? Is it possible to beat the market? What are the three forms of the Efficient Market Hypothesis? According to the Efficient Market Hypothesis, all share prices reflect all available information. As a result, it’s not possible for anyone (without inside information) to determine whether a stock is valued correctly. There are three forms of the Efficient Market Hypothesis, with each coming to a different conclusion about the efficiency of the market. Learn more about this hypothesis below.

Types of Bonds in Finance: 6 You Should Know About

What are the six different types of bonds in finance? What tips can help you buy the right ones? According to economist Burton Malkiel, bonds are worth including as part of a well-diversified portfolio. There are six main types of bonds in finance you should be aware of, and understanding the difference will help you to buy the right ones for you. Keep reading for an overview of the different types of bonds in finance.