A 7-year $1.3 billion hedge fund manager Chelsea Brennan shares her investment advice.

Laura Hermes

2018-10-05 10:38:00 Fri ET

A 7-year $1.3 billion hedge fund manager Chelsea Brennan shares her investment advice. Her advice encompasses several steps toward better financial literacy and freedom. From better retirement to superior socioeconomic status, each investor should understand his or her multi-year investment goals. For financially free and secure retirement, many investors focus on steady cash dividends, whereas, other investors seek healthy capital gains. It is important to keep a multi-year perspective to strike a better balance between these investment goals.

Also, it is easier to optimize average asset returns against multiple investment risks via multiple index funds. Each smart investor needs to diversify across U.S. and international index ETFs in stocks, bonds, currencies, commodities, REITs, and mutual funds etc. In practice, diversification allows him or her to boost the Sharpe ratio from the U.S. stock market benchmark of 0.33-0.35 to 0.63-0.85. The Sharpe ratio often constitutes 10% average asset return as the numerator and 30% return volatility as the denominator for the U.S. stock market benchmark.

Multi-asset portfolio optimization boosts 10% average asset return to at least 15% and then reduces 30% return volatility to 20%. This dynamic asset allocation helps ensure a better reward-risk Sharpe ratio near 0.75 or the mid-point of the healthy target range.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

What are the mainstream legal origins of President Trump's new tariff policies?

Amy Hamilton

2025-06-13 08:23:00 Friday ET

What are the mainstream legal origins of President Trump's new tariff policies?

What are the mainstream legal origins of President Trump’s new tariff policies? We delve into the mainstream legal origins of President Trump&rsquo

+See More

The top Sino-U.S. tech titans now reach the trademark total market capitalization of $4 trillion as of July 2018.

Fiona Sydney

2018-07-07 10:33:00 Saturday ET

The top Sino-U.S. tech titans now reach the trademark total market capitalization of $4 trillion as of July 2018.

The east-west tech rivalry intensifies between BATs (Baidu, Alibaba, and Tencent) and FAANGs (Facebook, Apple, Amazon, Netflix, and Google). These Sino-U.S.

+See More

Trump imposes tariffs on steel and aluminum in a trade war with some exemptions for Canada and Mexico.

Olivia London

2018-03-01 07:35:00 Thursday ET

Trump imposes tariffs on steel and aluminum in a trade war with some exemptions for Canada and Mexico.

Trump imposes high tariffs on steel (25%) and aluminum (10%) in a new trade war with subsequent exemptions for Canada and Mexico. The Trump administration&#

+See More

Would you rather receive $1,000 each day for one month or a magic penny that doubles each day over the same month?

Laura Hermes

2017-04-07 15:34:00 Friday ET

Would you rather receive $1,000 each day for one month or a magic penny that doubles each day over the same month?

Would you rather receive $1,000 each day for one month or a magic penny that doubles each day over the same month? At first glance, this counterintuitive

+See More

The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war.

Dan Rochefort

2019-06-13 10:26:00 Thursday ET

The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war.

The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war. In recent

+See More

Federal Reserve remains patient on future interest rate adjustments due to trade and fiscal budget negotiations.

Becky Berkman

2019-02-04 07:42:00 Monday ET

Federal Reserve remains patient on future interest rate adjustments due to trade and fiscal budget negotiations.

Federal Reserve remains patient on future interest rate adjustments due to global headwinds and impasses over American trade and fiscal budget negotiations.

+See More