Investment Theories: 14 You Should Know About

Investment Theories: 14 You Should Know About

What are some of the most popular investment theories? How can these theories improve your understanding of investments?  From the firm-foundation theory to the smart beta theory, economists have questioned the best way to approach investments. Key questions proposed by investment theories include whether the market is efficient, whether the diversification of a stock portfolio works, and whether risk can be reduced without proportionally affecting returns.  Keep reading for the top investment theories. 

A Random Walk Down Wall Street by Burton Malkiel

How to Invest Wisely in the Stock Market

What can you learn from A Random Walk Down Wall Street by Burton Malkiel? What are some of the best investment tactics? A Random Walk Down Wall Street by Burton Malkiel is designed as an accessible guide to financial markets for the individual investor. The book covers everything from buying life insurance to pricing commodities to understanding credit default swaps. But, for the most part, Malkiel’s focus is on common stocks—shares in individual firms—and the stock market. Keep reading for an overview of A Random Walk Down Wall Street by Burton Malkiel.

Economic Inflation and Deflation: What’s the Difference?

Economic Inflation and Deflation: What’s the Difference?

What is the difference between inflation and deflation? Can inflation and deflation be happening simultaneously? What is the problem with having extreme inflation or deflation? In the most simplistic terms, inflation is the general increase in prices, while deflation is the overall decrease. Inflation and deflation can happen simultaneously in different classes. Both are problematic for an economy when taken to their extremes. Keep reading to learn about the difference between inflation and deflation and why either is economically problematic.

How to Avoid Paying Taxes in College and Retirement

Mastering Investments and Taxes To Build Wealth

Do you want to know how to avoid paying taxes? What methods can stop you from paying unnecessary taxes on investments like pensions and college tuition? With the surfeit of tax-advantaged retirement plans and investment alternatives on offer, there is simply no good reason you should pay taxes on investment earnings for retirement or expenses like college tuition. Understanding how to avoid paying taxes in certain areas will inevitably save you money. Keep reading for tips about how to avoid paying taxes on certain investments. 

What Is Tax Loss Harvesting? Definition and More

What Is Tax Loss Harvesting? Definition and More

What is tax loss harvesting? How does this help investors to defer taxes? Tax loss harvesting involves selling stocks at a loss and replacing those stocks with similar stocks, to pay less in taxes. Implementing this method means investors can defer their taxes while maintaining the risk/return rate of their stock portfolio. So, what is tax loss harvesting? Keep reading to find out.

The Types of Financial Investments and How They Work

3 Major Tips From Charlie Munger on Investing

What is a financial investment? Why do people invest their hard-earned money in spite of the unpredictability of return and other risks? Investment is the sacrificing of money, goods, and services today to have more valuable money, goods, and services in the future. Because the future is unknown, investments necessarily involve risks, which must be compensated to make it worthwhile for people to undertake the investments.  In this article, you’ll learn about the types of financial investments, how they work, and their associated risks.

The Key Characteristics of a Monopoly Market Structure

The Key Characteristics of a Monopoly Market Structure

What are monopolies? Why are they harmful to economies? In short, a monopoly exists when a specific person or organization is the only supplier of a particular good or service. This causes a market distortion and reduces consumer welfare. Monopolies face little to no economic competition to produce goods, have few substitutes that consumers can use instead, and are able to price well above what an efficient market would otherwise produce. In this article, we’ll explain the characteristics of the monopoly market structure and discuss how monopolies are maintained.

How to Decide What Stocks to Buy: 3 Key Strategies

How to Decide What Stocks to Buy: 3 Key Strategies

Do you want to know how to decide what stocks to buy? What are three crucial strategies you should know about? One of the most difficult decisions an investor has to make is how to decide what stocks to buy. But, with approximately 2,800 companies listed on the New York Stock Exchange, where does one start? Economist Burton Malkiel recommends three strategies for picking stocks: The “autopilot” strategy, the “interested-and-engaged” strategy, and the “trust-the-experts” strategy. Find out how to decide what stocks to buy below.

What Are ETFs in Stocks? Definition and Usage

The Impact of India's Economic Collapse on Annawadi

What are ETFs in stocks? Are exchange-traded funds worth investing in? ETFs in stocks are similar to mutual funds but are instead traded on the market like common stock. These types of funds are beneficial as they can sometimes offer tax advantages. Understanding the pros and cons of ETFs in stocks will help you decide whether they are right for you. So, what are ETFs in stocks? Keep reading to find out.