Both the rise in cryptocurrencies and the volatility of stock and bond prices last month have led to many questions about whether value stocks are still a good place to invest. Growth stocks have risen in price far faster than value stocks over the past several years, and especially last year, which was marked by […]
Last month I posted a chart on how stock prices rose 7x more than house prices over the 20th century, which although backward looking, provides some idea of why investors should consider allocating as much of their wealth to stocks as to investment real estate. Here I expand the chart with data from the BIS […]
Facebook memories rarely remind me as dramatically as this one what opportunities to multiply money can look like. This was a clear example of “be greedy when others are fearful” that I admit I myself (regrettably) did not take advantage of. At that time, Citigroup was priced for a very high likelihood it might go […]
Vanguard is synonymous with low-cost, passive investing. Here I present some charts showing some metrics that can be used to enhance an asset allocation of the top Vanguard mutual funds even among these broadly diversified, passive funds. Despite my disagreements with him, Jack Bogle remains one of the foundational figures of today’s investing world I […]
When considering which asset classes to invest in, it makes sense to ask “what do the wealthy invest in?”. First generation American millionaires tend to earn more of their wealth from their investments than directly from their salaries, and so one guide for deciding which of the many different types of investments best build wealth […]
Over the past week, stock and bond markets around the world have fallen more than many people remember seeing in years. After an amazingly smooth ride up in 2017, when the S&P 500 index rose almost 20% without declining more than 2% on any day that year, investors were suddenly reminded over the past week […]
I am often asked about investing in stocks vs property, as owning physical residential real estate is an understandably popular investment choice in Hong Kong and other major cities. Urban professionals have seen apartment prices, and their rents, rise faster than inflation and almost as quickly as their salaries, and there is a level of […]
In January and February many firms, especially banks, give out annual bonuses to employees, which in some cases make up a large percentage of the employee’s annual earnings. After years like 2017, when the economy and global stock markets have done exceptionally well, I am naturally asked, more than in most years, about how to […]
My latest article describes how to choose the 10 first stocks to buy a 10-year old, and why I think it’s important to start kids investing in individual companies rather than mutual funds from an early age. As I disclose: I bought Coca-cola for my older child and PepsiCo for my younger child because they […]
Following part 1 and part 2 of this series “Currencies for the long run”, here is a chart showing the long-term trend since 1980 of 6 major Asian currencies: The Chinese Yuan Renminbi, Indian Rupee, Philippine Peso, Thai Baht, Malaysian Ringgit, and South Korean Won. As the previous two posts showed different trends in relatively […]