Questions tagged [investment-strategies]
Discussions about different investment strategies, and their different outcomes.
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Why does the range of annual returns of common stock reduce over larger time periods?
I am reading the book, "A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing (Twelfth Edition)", to better understand investing.
Chapter 14., section 2. has the ...
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Why are world ETFs considered high risk?
I am in Austria, and am investing in ETFs via one of the big brokers in Germany (Flatex), with a view to holding on to them for many years.
Brokers like Flatex require private customers to define ...
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Do I need a license or certificate to start an investment firm?
I am a tech entrepreneur. I have a lot of friends who work in the tech industry as well. I would like to start an investment company and ask my friends to invest their money in it. Then, I will find ...
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What would have been a good medium-term investment in 1999?
The longest stock market stagnation in recent times was in the early 2000s: first the dot-com crash, then the great recession. If someone in 1999 had bought into, say, an S&P 500 index fund, it ...
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Why would people invest in T-Bills over an extended period of time, when more tax-efficient options like BOXX exist?
Assuming a retail investor holds/rolls T-Bills for years, is there any reason for a retail investor to buy T-Bills directly when tax-efficient ETFs like BOXX exist (that provide the same return as T-...
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How to mitigate systematic risk?
I'm studying for the SIE in the United States. I'm learning about the different risks and how to mitigate them. The only way given to minimize systematic risk is to hedge using puts on an index such ...
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What date in a tax year to invest in an ISA?
There is a well known result that if you have to choose the best option from a set of randomly distributed options then you should sample the first 37% of them, then from the remaining 63% select the ...
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How to handle an account that lost value after inheritance? (USA)
The exact amounts aren't important, so I'll just invent some for the example.
My wife’s mother put $50,000 into a mortgage sharing fund¹ from which she received a proportional share of the interest. ...
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Suggestion to recover from a bad naked call
I sold a Jan 2026 CRWD $140 Call, and now the price skyrocket to 235 (I know, bad move)
How do one usually get out of this situation?
Many thanks.
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References/terms to search for regarding financial instrument universe selection
When attempting to profit off of the market in one way or another, an entity, be it a fund, individual investor, institution, etc., must first decide on what actual financial instruments are to be ...
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Can a 2 million dollar perpetuity sustain 100k/month
Based on a 2 million dollar donation, Is there a perpetuity that would be self sustaining to keep a small individual long term care residential house afloat? Or what would be another option given the ...
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Comprehensive Investment Strategies: Does Going Beyond S&P 500 ETFs Pay Off?
I am intrigued by investment strategies beyond S&P 500 ETFs. How significant is the impact of elements such as international stock ETFs, bond ETFs, real estate ETFs, commodity ETFs, or additional ...
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What kind of investment strategies are typically employed when investing at the industry level?
I know economic sectors such as industries represented by SIC codes or GiCS codes are often covered in depth by analysts and some specialize at the industry level rather than stock level. At least ...
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How would you balance this scenario?
I have two jobs, one is in the private sector (access to 401k) and one is in the public sector academia (access to 401b/453b) and my wife has a private sector job (access to 401k) and both of us of ...
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When is the stock market a good idea?
I'm your average person. I have an education, with 2 years of college in an area unrelated to finance. I have a 401k, and a disposable income. I'd like to invest some of this income. There are many ...
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betting on rates going down using bonds
There is a strategy that I am thinking of and would love to know about downsides: people buy/sell bonds to have a guaranteed return if held to maturity. But they also buy to take a directional view on ...
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Should I sell mutual funds that are performing well or poorly first?
I have roughly equal investments across 4 different high-risk "growth" mutual funds -- let's just assume that other than all being high risk, they're fairly well diversified. Two of the ...
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What is the acronym for investments that only billionaires can make?
Some time ago I read that when a product had high profitability possibilities, investments were opened exclusively to billionaires and any millionaire, no matter how much they met the required amount, ...
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Investing on someone’s behalf UK
If I wanted to invest on my friends behalf for a percentage commission to them, do I need a license to do this?
Is it as simple as registering with someone if this is the case?
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How should I aggressively invest in ETFs with the goal of early retirement?
I'm 27 years old and trying to get my finances in order. I am very new to investing.
I have around 50k in the stock market (mainly VOO, VTI, QQQ) but it wasn't done with any intelligence. I mainly ...
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Buying stocks after a successful but excessively diluting seasoned offering
I regularly see companies offering seasoned equity with a subscription right and whose capital increase is successful but whose stock still dips a few days after below the rate of the subscription ...
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CAD-denominated investments from the US [closed]
I am a Canadian resident in the US who is not a resident/tax resident of Canada. I find myself sitting on some excess CAD. I would like to invest it into a CAD-denominated asset instead of converting ...
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Do I need a green card if I want to find an investor for my startup? [closed]
Should I either wait until I get my Green Card( maybe 6 months) or can I reach to investors with my EAD card if I have a complete mobile application ready to launch + a business plan for that?
PS: I ...
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How to 'recession-proof' a 401k (least risky investments)?
A 401k can have risky and less risky investments.
What are recommended as the least risky investments within a 401k within the USA??
Presently most of the 401k is in conservative funds (PHYZX, MWTIX).
...
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What is the way to get money managed without hiring a personal financial advisor?
What is the way to get money managed without hiring a personal financial advisor? I do not think I need any personalized approach, I'd rather have a target retirement date and I would like to get ...
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Why Dividend Yield differs for the same company on different birga?
Why European tickers of American dividends stocks has not dividend yield?
Does it mean that for dividend strategy I should buy on US birgas, not on local European ones? Will it affect my taxes?
For ...
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Do investors have any copyrights on the application they invest on? [closed]
Considering I am the founder of Instagram, it means I have written 100% of the application code by myself, then found an investor and they put some money into the startup and got 30% of the new ...
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Is there a way to download the stock values of companies? [closed]
Recently, my bank approached me with an offer for an investment fund, its basket containing about thirty stocks.
I wanted to know about the evolution of those stocks, so I tried looking for "...
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Is it better to invest on safe asset as one gets older?
I heard that as one gets older, one should invest more in safe assets such as bank accounts.
I would like to know the rationale for this recommendation.
For example, this Investopedia webpage ...
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Is artificial intelligence investment more useful than human decision? [closed]
Many securities companies are promoting AI-powered investment products.
That is, artificial intelligence determines the proportion of products that they put their money on.
I wonder whether these ...
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Curious observations about efficient frontier calculations
I was using Portfolio Visualizer to try out a few efficient frontier calculations. You can run the same calculation using this link. I find it quite curious: 1) What causes Portfolio 2 to stop at σ ~ ...
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Should I invest in US bond ETF as a US Non-resident Alien? If so, how should I manage the bond portfolio?
I’m currently investing in US market using IBKR with 70% index ETF (QQQ, VOO, etc.) and 30% bond ETF split (only BND at the moment).
I’ve done this for two years
I’m aware that a 30% withholding tax ...
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If I can continuously get short-term interest free personal loans with no fee, is there a way that I can use this money to generate more money?
I can get a $120 interest-free loan each day, but I need to return the money in 30 days (when my credit card bill is due). There is no fee I need to pay; instead, I can get small cashback from this ...
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Is there a way to make trades similar/identical to a university endowment manager to copy them?
The assumption is that user has little time to do research and is willing to copy another investor. Are any of the endowment funds publicly disclosing their trades?
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What is the best getting investment strategy? [closed]
Consider a person wants to create a giant company as big as Airbnb, Netflix, Coinbase, etc. And he has an idea that investors will love it.
This person also knows the computer programming and can ...
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How much may a 30x increase in SpaceX revenue increase SpaceX stock value? [closed]
I know there is no exact answer to this, but I wonder if one of you readers with experience or education in these sorts financial things could depict what a reasonable outcome could be for SpaceX ...
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Spending Money Before Taxes
So I had a query and was wondering if you could help me out. I was about to get a substantial sum of money from somewhere which would definitely be taxed by authorities however I would rather invest ...
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Do High Interest Savings Account (HISA) have an associated risk?
I have been chatting with a friend who asserts that all investments have an associated risk. In reference to this I suggested a High Interest Savings Account, claiming it has no risk. My friend ...
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Why are index funds not always the optimal strategy for investing?
I heard a claim that it is always the best strategy to invest money to the index fund. Why is the mistake in that sentence? Because I don't understand why there are investment advisers if we already ...
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Enter and Exit strategies to grow profit [duplicate]
The scenario is that a trader wants to trade just one stock through swing trading and take the profit. For example, the trader bought 50 shares of XYZ for the price $5. The stock went up to $7. He ...
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I cannot calculate this because I don't have the discount rate
What is the NPV of the following investment? Upfront, it requires an investment of 1598. Then, it generates a cash flow of 774 after one year, 659 after two years, and 623 after three years. After ...
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How to use short selling to safeguard or protect an investment?
I came across the following question:
Kumar has 100 shares of ABC Co. which he bought at $ 50. The current market price is
$ 140. Illustrate how Kumar using short selling can safeguard or protect his ...
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Financial pros and cons of having a rainy day fund in a savings account versus invested?
I used to have about 4 months of expenses in a savings account as a "rainy day fund" in case of emergencies.
The last year or so, though, I've switched to having a minimum of expenses (about ...
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Is the return rate equal to the discount rate if I buy a stock at its intrinsic value?
I know many value investors emphasized that we need to buy a stock with margin of safety since our estimation for intrinsic value is not precise. By this way, we can lose less when our estimation is ...
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How can I invest or save savings bonds as they mature over 17 years?
I have a relatively large number of Series EE and Series I savings bonds that were given to me as gifts as a child to help pay for college. Fortunately, I did not need to use them and so now they are ...
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How to prepare for a war [closed]
I understand that the value of investments in debt, equity, paper currency, bonds, and in physical properties all go down if the country gets into a major war.
What is the best strategy to be prepared ...
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How to manage money with no expenses [closed]
Suppose a person has $165K in his checking account and has no expenses (e.g living with parents, home cooked meals, etc.).
What would be the best way to distribute/use this money? Should some of it be ...
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Is it a good idea to make one additional monthly payment to a mortgage?
This is an oversimplified scenario (the numbers, dates and interest rate may not be accurate as I am only asking about the strategy):
I have a mortgage with a monthly payment of $1,000 and it is due ...
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Why doesn't common investment advice include the idea of pulling out of the market during downturns?
The most common advice goes somewhat as follows:
Every month, save as much money as possible after paying down your high interest bills
Put that money into an index fund
Reinvest dividends
Enjoy your ...
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Better to withdraw from 401k or take out home equity loan for investment opportunity?
There is a fast-approaching investment opportunity (January) that I very strongly believe will have significant short-term (2x - 5x within a matter of months) and long term returns. I need ...
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