2018-10-05 10:38:00 Fri ET
stock market gold oil stock return s&p 500 asset market stabilization asset price fluctuations stocks bonds currencies commodities funds term spreads credit spreads fair value spreads asset investments
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.
2019-01-05 11:39:00 Saturday ET

Reuters polls show that most Americans blame President Trump for the recent U.S. government shutdown. President Trump remains adamant about having to shut d
2019-06-03 11:31:00 Monday ET

The Sino-U.S. trade war may be the Thucydides trap or a clash of Caucasian and non-Caucasian civilizations. The proverbial Thucydides trap refers to the his
2024-07-31 09:28:00 Wednesday ET

In the modern monetary system, each new CBDC helps anchor public trust in money in support of economic welfare, especially in a cashless society. In our
2022-11-05 11:32:00 Saturday ET

CEO overconfidence and corporate performance Malmendier and Tate (JFE 2008, JF 2005) argue that overconfident CEOs are more likely to initiate mergers an
2020-10-06 09:31:00 Tuesday ET

Strategic managers envision lofty purposes to enjoy incremental consistent progress over time. Allison Rimm (2015) The joy of strategy: a bu
2020-02-02 11:32:00 Sunday ET

Our fintech finbuzz analytic report shines fresh light on the current global economic outlook. As of Winter-Spring 2020, the analytical report delves into t