Some studies have shown that up to 90 percent of an investor’s return depends on how money is divided between various asset classes, from equities such as domestic and global stocks, to fixed-income investments such as bonds and cash. Set it and forget it investing: Target-date funds are...
There are various types of assets investors must know about and can use to help determine good opportunities in the market. Image source: The Motley Fool What does "asset" mean? An asset is anything with positive economic value. Assets can be classified in several different ways. Assets ...
It may be tempting to purchase gold only during times of crisis, banking on its track record as a safe haven. But the World Gold Council’s data, alongside various historical examples, reinforces the idea that gold can also thrive when markets look good. This is partly thanks to consumer ...
Moreover, some of these new asset classes have limits on liquidity. If the money rushes out, returns may suffer. That's not to warn anyone away from bank loans, or emerging market debt, or low-volatility strategies, or anything else. Just be aware when you're buying: If this asset ...
While mutual funds provide diversification across various asset classes, exchange-traded funds (ETFs) afford investor access to narrow markets, such as commodities and international plays, that would ordinarily be difficult to access. An individual with a $100,000 portfolio can spread the investment ...
An portfolio can be made up of various investment vehicles. Here are tips on building yours. There's no one-size-fits-all asset allocation strategy Asset allocation plays a vital role in an investor's overall experience since there's a lot of correlation among assets in the same class. How...
Index-based annuities are products designed to provide downside protection while still allowing some growth potential. The returns of fixed-indexed and registered index-linked annuities are tied to stock market indexes, but you don't own any of the underlying securities. By imposing caps, participati...
Valuing ABS and MBS can be done with various methods, including zero-volatility and option-adjusted spreads. Asset-Backed Securities (ABS) There are many types of ABS, each with different characteristics, cash flows, and valuations. Here are some of the most common types. ...
What are the risks of digital assets? The risks presented by digital assets are based on trends in society: Volatility:Digital assets, especially crypto currencies, tend to have a higher volatility compared to traditional asset classes, meaning their price can fluctuate wildly. ...
This legal structure is backed by the mortgages it owns. But from a given pool of mortgages, a CMO can create different classes of securities that have different risks and returns. For example, it can create a “safer” class of bonds that are paid before other classes of bonds. The last...