Articles on Stock markets
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How Do I Measure My Risk Tolerance?
Your risk tolerance should be a measure of how willing you are to absorb losses in your portfolio.
Studies in behavioral science show that investors loathe losses about two and a half times more then they enjoy gains. Everyone can likely relate to this stat.
But, to be a successful investor that achieves long-term equity like returns, one has accept some level of risk inherent in the stock market.
Would you be capable of absorbing a 20% loss in your portfolio, and not be tempted to sell all of your equity holdings? If so, you can likely handle being largely allocated to stocks.
Are you very sensitive to loss, and just do not want to see your portfolio balance drop below where it is today? Then fixed income is probably a better solution for you.
Most investors fall somewhere in between, which means working with your financial advisor to create an asset mix that meets your needs.
Over time, equities have proven time and again to deliver solid long-term returns to investors, it's just the bear markets and corrections along the way that prevent all investors from realizing them (spooked investors often sell stocks before participating in rebounds).
What does it mean to Accept Risk?
What is the “Riskless” (or Risk-Free) Rate of Return?
What is asset management?
Asset management is a term often reserved for the overseeing of assets on behalf of wealthy clients with significant assets
Who is a Bill Collector?
Bill Collectors jobs are to extract as much payment from those who are past-due on payment obligations
What if I Need the Money in My 401(k) Before I Retire?
Withdrawals and loans can be taken out of a 401(k) before retirement, but the money may be subject to penalties and taxes
Who Can Contribute to a Roth IRA?
Most people will be able to contribute to a Roth, but once your income hits certain limits, you may need to find another way
What are some examples of Investment Instruments I can use?
There is a wide variety of investments available for every kind of investor: Stocks, bonds, Mutual Funds, ETFs, and so on
If I Want to Establish a Keogh Plan, Do I Have to Establish One for All Employees of My Business?
Keogh plans have minimum eligibility requirements that will probably include most of your employees, but not all of them
What is a Dividend Rollover Plan?
Dividend rollover plan is another, rarely used way to refer to a Dividend Reinvestment Plan (DRIP). Unfortunately...
What is Mortgage Interest Deduction?
Mortgage Interest Deductions are allowable income tax deductions that equal the amount of mortgage payments in a year
Can Blockchains Reduce Fraud and Failed Payments?
Blockchains can validate, clear, and document transfers of value much faster and more securely than traditional methods
What is the Short Interest Ratio?
The Short Interest Ratio (SIR) measures investor sentiment for a given company and is calculated using the number of....