Category Archives: Stock Market Investing

Why you should invest only for the long term

long-term-investingIt is often recommended by financial advisors that people should only consider investing in stocks and shares if they intend to not need the money within the next five years. The main reason for this is that the stock market can be very volatile in the short term. For example, the United States’ S&P 500 index lost nearly 40% of its value in 2008. This would not have been a good outcome for an investor wanting to utilise investments in this fund shortly after the drop. However, there are other benefits of adopting a long term approach to investing, which are often overlooked or which are not widely taken seriously. Continue reading

Standoff and stocks selloff – Should Investors be worried

newsweek - equitiesAs Donald Trump and North Korea’s Kim Jong-un keep threatening to have a showdown, the press cannot help but to sensationalise these events in-order to try and predict how the stock market will perform or justify how the markets have performed. It is surprising how potential events in Guam are having significant interest across the world. Here are a few headlines from the past few days: Continue reading

Top 5 Portfolio holdings – Pacific Ex-Japan Index Fund

pacific regionThe fifth and final world region to be considered in the index fund top 5 holdings series is the Pacific Ex-Japan index fund. This fund tracks an index which represent the biggest companies in Australia, Hong Kong, New Zealand, and Singapore Oceania region. This fund excludes Japan which has its own index fund as detailed here. This fund employs a “passive management” investment style, a strategy which is designed to track the performance of the index by investing in all, or a representative sample of the securities of which the index is composed of. Continue reading

The true cost of home bias and currency risk on investments

 mount rushmore us presidents.When looking at stock market investment returns all is not as it initially seems. The returns of the separate funds within your personal portfolio can vary drastically from the actual returns of the underlying funds. This happens if your holdings are diversified; when you are invested in funds from different regions across the world.  The main reason for the difference in performance is the impact of risk caused by the variations in global currency exchange rates and Continue reading