8

In the 2008 bear market, with equities, there was nowhere hide. When the market was down 50+ pct from 2008 to March of 2009, the best performing SPDR sector (with dividend reinvestment) was Consumer Staples which lost 31% and the worst was Financials which lost 76%. It's debatable if gold performed well because for the calendar year of 2008, it dropped 30% ...


7

Even if you own a roulette wheel, letting a gambler bet you your entire net worth (or even sizeable % of it) in a single wager is a very high risk thing to do, despite the fact you have a clear edge and will win over time in a very stable manner as they make repeat bets. The main problem for investors outside of people already sitting on millions+ is it is ...


5

Medical insurance in the US is a little crazy because people routinely expect it to cover all sorts of little things, every visit to the doctor's office, every prescription, etc. Let's ignore that for the moment and think just of the more "normal" part of insurance: protection against an unusual but potentially huge expense. Suppose you buy fire insurance ...


4

what is cost of coverage (without insurance) for the things i may need medical assistance with? Cancer costs something in the neighborhood of $1,000,000. A complicated child birth can be $250,000. The issue is that about 70% of claim dollars are paid toward treatment of about 10% of the covered people. The remaining 30% or so of claim dollars will go ...


3

All insurance is a waste of money until you need it. Surprisingly, prior to Obamacare, the #1 cause of bankruptcy in the US was catastrophic medical illness. With a greater number of people subsequently having insurance or Medicaid, it's no longer #1. Quality of life, life expectancy, etc. are worse for people without health insurance thought that tends ...


3

“There are no magic numbers in trend following", written by Norman Fosback wayyy back when. Moving averages (MA) are just lines on a chart based on arbitrarily chosen numbers. The longer the MA, the less noise and the fewer the number of whipsaws. In return for that benefit, your trade execution will be late and by the time you act, your position may ...


2

Roughly: If you want to hedge against a drop in pork prices you would enter a futures contract to deliver y pork bellies at z price on x date in the future to lock in a better price now than where you expect the price to be in the future. However, if you are good at predicting the future prices of pork you are generally significantly better off being a ...


2

A simple model of insurance is that it minimizes risk by lowering both the expected value of your gains (increasing the expected value of your losses) while decreasing the variance of those gains. The most insurance can do is to pay 100% of every covered claim with no limitations, for a presumably rather large premium. The least you can do is to buy no ...


2

WeWork has a residential brand, WeLive, that does not own it's buildings. I guess we'll find out if this is a business model that can grow into single family homes. The New York-based startup does not own any of its WeWork or WeLive properties, but rather leases floors and buildings from landlords, improves the spaces, and then rents them back out. ...


2

It terms of level of risk, from what I've seen the broad risk is comparable to broad equities (returns in the 7-15% range), but rather then the level of risk, real estate presents different risks than bonds of equity. The benefit of this is that real estate is a diversifying asset when combined with bonds and equity, since the odds of "bad things" happening ...


2

You've thrown a lot of ideas at the wall and this might have been better if posed as more concise, separate questions. The short overall answer is: 1) A portfolio such as you described increase in value because of interest received and share price appreciation. Dividends do not increase the value of a portfolio. 2) It decreases in value from share price ...


2

Buy and hold is actually a terrible strategy, generally speaking for the average investor. The main and most famous proponent of Buy and Hold is probably Warren Buffett. But he doesn't just advocate buy and hold.. He also advocates careful and deep research, before making that said "buy and hold" investment. Even then, among his investments only a few ...


1

how do you actually get money back when your investments are appreciating? You sell some of your shares. (This is also why borrowing low-cost money to invest in stocks is... risky: a loan payment is due every month, but increases in stocks are only realized when you sell them.) How about shares that you specifically bought just for their dividends, do ...


1

Typically, and potentially as a requirement from the SEC, an ETF actually involves a small variety of separate legal entities. Very basically: the assets are held by some sort of custodial entity. the management is performed a separately organized and operated legal entity. Usually a management company will manage multiple ETFs. Should the ...


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