Questions tagged [investment-strategies]

Discussions about different investment strategies, and their different outcomes.

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23
votes
7answers
1k views

Does dollar cost averaging really work?

Does dollar cost averaging really work? If I have money available now, why shouldn't I invest it all at once? If the market's going up, wouldn't that be better?
15
votes
5answers
2k views

Does it make sense to buy an index ETF (e.g. S&P 500) when the index is at an all-time high?

I have some money I intend to invest over the next 3-4 years. An important chunk of my portfolio would be invested in a stock market index ETF such as one representing the S&P 500. Unfortunately, ...
5
votes
4answers
2k views

How to rebalance a portfolio without moving money into losing investments

I've read a number of conflicting opinions on whether portfolio rebalancing is a good idea. The question of whether rebalancing is a good idea has been addressed in some questions here, too, such as ...
38
votes
10answers
11k views

How to rescue my money from negative interest?

My bank has announced negative interest rates starting Q1 2016. I have CHF 250'000 in that savings account (Swiss Francs). Now, pretty much all other banks will probably follow suit soon, if they ...
9
votes
4answers
9k views

Is it bad practice to invest in stocks that fluctuate by single points throughout the day?

It seems like a no-brainer to me: Find a cheap stock with a good name (Dell, FB, Sony) that fluctuates by a few dollars per day (between -$2 and +$2), and is consistent in the fluctuation throughout ...
10
votes
2answers
1k views

What are the primary investment strategies people use and why do they use them?

When I first started studying investing the literature I was reading pointed me towards something called technical analysis. As I started asking questions about this trying to determine exactly what ...
17
votes
2answers
1k views

Can someone explain the different kinds of annuities?

So in my retirement and personal investing I have some stocks (very little), a Roth IRA, a Roth 401K and a Traditional 401K (later two are from work and I split things right now). At my age and ...
9
votes
4answers
4k views

What does a well diversified self-managed investment portfolio look like?

A lot of online blogs and investing material suggest that investing in a single index is not diversified enough to avoid some types of market risk. So the question then is, what does a well ...
6
votes
6answers
3k views

How can I invest my $100?

Is it feasible to invest a very small amount of money? If it is, how can I attain it?
6
votes
2answers
1k views

How should I invest my money as a young graduate in Europe?

This is related to this question, but that question's answers are 95% tailored for residents of the US, basically recommending to full out the 401k retirement plan and this and that about stock market ...
62
votes
10answers
19k views

Why does it seem the best way to make a living is to invest in real estate?

I can't get past the idea that, if you work well in your job, you may get laid off or fired, and companies do not like to hire you when you get past the age 45 or 50. But if you invest in some houses ...
11
votes
5answers
2k views

When is the best time to put a large amount of assets in the stock market?

I'm interested in timing with regards to long-term index investing. Based on the advice of The Investor's Manifesto and others (John Bogle, William Bernstein) they stress how big a difference ...
1
vote
1answer
192 views

What makes one smart and/or successful in investing? [closed]

Pretty broad question, but I hear these things thrown around a lot and was wondering if such a canonical or straightforward definition exists. To make this simple: What makes an investor "smart" as ...
4
votes
1answer
135 views

Should I do a Rollover 401k instead of a Rollover IRA because of the loan option?

Until now, I was pretty much convinced that rather than rolling over the 401k from my old company to the new company, it is a much better option to roll everything over to a Rollover IRA, and my ...
4
votes
4answers
271 views

Evidence for timing market in the short run?

I've deposited a sum of money in my Roth IRA and I'd like to invest soon, but I don't a firm deadline. Is there any evidence for a strategy I can use to "time" the market over a short time horizon, or ...
2
votes
2answers
163 views

Managing investments for multiple goals

I have been investing towards multiple goals, like Retirement, House, Car, Vacation etc. So I make monthly deposits against each of these goals. But I have a single fidelity account for investing, so ...
2
votes
2answers
864 views

Downside of having multiple brokerage accounts?

I have around 4-5 long term objectives, that I would like to invest towards separately. I was planning on opening a separate brokerage account for each objective. The benefit would be that each ...
2
votes
4answers
237 views

Why is tax loss harvesting helpful for passive investing?

I am considering opening an account with a robo-advisor (e.g. Wealthfront), and in my research I have seen that robo-advisors often advertise tax loss harvesting as a feature of their accounts. ...
2
votes
2answers
190 views

Protecting onself from steep losses with a stop-limit sell order

I would like to get some feedback if there are any obvious flaws with this strategy of limiting my losses when there's a steep drop in stock price due to negative report after hours. Suppose I own ...
1
vote
1answer
151 views

Dollar cost averaging an expensive asset

Suppose I want to invest $1000 every month in asset X, in order to implement a dollar cost averaging strategy. The idea here is that when X is cheap, I will end up buying more shares with my $1000, ...
0
votes
2answers
415 views

What is Systematic about Systematic Investment Plan (SIP) and who invented it?

What is Systematic about Systematic Investment Plan (SIP) and who invented it ? Even if we invest in real estate, or recurring deposit, we do it systematically; Why is only SIP considered systematic ?...
-1
votes
4answers
2k views

Is compounding interest on investments a myth?

I continually see examples encouraging young people to start investing for retirement with graphic examples using compounding interest to show that starting early pays off big. I've always bought into ...