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.
2018-11-23 09:39:00 Friday ET

Former White House chief economic advisor Gary Cohn points out that there is no instant cure for the Sino-U.S. trade dilemma. After the U.S. midterm electio
2023-02-28 10:27:00 Tuesday ET

Basic income reforms can contribute to better health care, public infrastructure, education, technology, and residential protection. Philippe Van Parijs
2017-02-19 07:41:00 Sunday ET

In his recent book on personal finance, Tony Robbins recommends that each investor should rebalance his or her investment portfolio *only once a year* to in
2022-10-05 08:24:00 Wednesday ET

Precautionary-motive and agency reasons for corporate cash management Bates, Kahle, and Stulz (JF 2009) empirically find that public firms have doubled t
2019-04-03 11:35:00 Wednesday ET

A Florida fintech group Fidelity Information Services initiates the largest $43 billion acquisition of the e-commerce payments processor Worldpay. Fidelity
2022-10-15 09:34:00 Saturday ET

Internal capital markets and financial constraints Duchin (JF 2010) empirically finds that multidivisional firms with robust internal capital markets ret