Thursday, 25 December 2014
Saturday, 20 December 2014
Tuesday, 9 December 2014
Wednesday, 26 November 2014
Interesting article on psychology and equity threshold.
Tuesday, 25 November 2014
Friday, 21 November 2014
However, what happens in practice is more often tragic. Here are some of those stories.
Thursday, 20 November 2014
To check valuations of world markets, here are some useful resources:
If you want to be your own central banker, try this.
Rolesia is a free, fun and strategic economy web simulation for all who enjoy strategy simulations, and for all wishing to discover and understand the policy tools on offer to Governments and Central Banks around the world. The purpose of the software is to help the world-wide population understand the complexity of the world economy, and also to understand the power behind governments’ fiscal and the central banks’ economic monetary policies. Helping to improve the world population’s knowledge is a small contribution towards empowering the people of this planet and strengthening democracy. The simulation can be perceived as an economy game based on a virtual economy.
Wednesday, 19 November 2014
Can Money Buy You Happiness? It’s True to Some Extent. But Chances Are You’re not Getting the Most Bang for Your Buck.
Here is a list of very basic principles as prerequisite to investing. This is a concise list. Each line deserves a chapter, if not a book, on its own.
- Pay yourself first. Establish a habit to save regularly.
- Start early. Benefit from the magic of compounding interest.
- Keep costs low. Costs eat a huge portion of returns over time.
- Use value-averaging, or dollar-cost averaging. Invest regularly the same amounts at equal intervals. Because of markets' reversion to the mean this leads to dollar-cost-averaging of the asset price.
- Stick to index funds ("what you understand") as the core. Active funds are expensive and, in general, return less. Specialist funds or individual securities can be used as satellites. This is known as "core-satellite" strategy.
- Keep cash portion in liquid bonds for better returns.
- Stick to your asset allocation.
- Pay attention to the total return (income + growth). Income funds yield more but usually have lower total return. Tax effects of income - income is taxed immediately but tax on growth is delayed (taxed only if sold).
- Long-term price earnings (P/E) ratio is 14. Starting valuations matter.
- Asset allocation, the risk balance, is the main determinant of return. Bonds proportional to age (?).
The principles above come from various texts and personal experience. They should be refined over time.
A good article on valuations and starting point for investments by Shane Oliver.
These charts explain a lot:
Thursday, 16 October 2014
A good article on portfolio rebalancing:
Three key strategies can help investors take advantage of portfolio rebalancing:
- Time-only. Triggers a rebalancing based on a set time schedule such as monthly, quarterly or annually.
- Threshold-only. Ignores time and triggers rebalancing only when a portfolio deviates from its target asset allocation by a predetermined minimum percentage, such as 1 per cent, 5 per cent, 10 per cent. It requires daily monitoring to determine timing.
- Time-and-Threshold. The portfolio is monitored on a set time schedule but is rebalanced only if the allocation deviates from the target by the predetermined minimum rebalancing threshold at that time.
Diversification, patience and buying when valuations are attractive, are key investment principles.
"Maximising the full range of investment opportunities, only purchasing when valuations are attractive and maintaining a well-diversified portfolio, are important investment principles."
- Diversification is key
- Buying at the right price matters
- Be clear about your objectives and have a plan
- Consistently achieving a solid return
Tuesday, 14 October 2014
The European Commission’s Ageing Report (2012) said Germany’s workforce will shrink by 200,000 a year this decade.
Friday, 10 October 2014
Apart from being almost knocked into the red, the Fear & Greed Index is an interesting indicator to watch.
Saturday, 27 September 2014
1 in 116,531,800 chance, it seems, sounds just terrific for millions of those who play. If they actually knew the numbers they would probably stop playing at all.
The Winning Odds Every draw there are 13 levels of winnings possible. For the lowest tier you have to correctly guess 2 of 5 drawn numbers. However, as there are balls with numbers up to 50 the odds of you winning it are 1 in 23. A chance to get right 2 main balls and one of the Lucky Stars is 1 in 46 whereas a chance to get right 1 main ball and both of the Lucky Stars is 1 in 157. The last tier with odds less than 1 in 1000 is 8th (3 +1 Lucky Star). The one higher up already reaches a 1 in 11,771 for 3+2. Certainly, you care about the big cash but how does a 1 in 116,531,800 chance sound? That’s how lucky you have to be to win the jackpot. But don’t worry, because an overall chance of winning anything in EuroMillions is 1 in 13 which is one of the best amongst the biggest lotteries’ in the business.
Friday, 26 September 2014
As the markets seem to entering a sell-off, an article on DCA might be appropriate:
Wednesday, 24 September 2014
Monday, 22 September 2014
Friday, 19 September 2014
Sunday, 7 September 2014
I use Yahoo! Finance portfolio as they have most of the securities from all over the world. Their portfolios feature is available to everyone and is quite fast and convenient. You can even create a separate view that includes only the symbol and price, which would perfectly match the export process.
Yahoo Finance - Business Finance, Stock Market, Quotes, News
To import prices into Quicken, do the following:
- Open your Yahoo portfolio
- Select and copy the table into clipboard (Ctrl+C)
- Open a Google spreadsheet
- Paste the table into an empty sheet
- Do some preparation here:
- Delete all columns except the security symbol and price if you are not using a custom view.
- Customize the symbols - remove extensions with Find/Replace, etc.
- Use "File -> Download as..." option to download a .csv file
- In Quicken, use File -> File Import -> Import security prices from .csv file
- In the pop-up dialog, select the date for the prices. I have not found the correct date format for the date so it is safer to simply select it in the dialog itself.
Note that the instructions refer to Quicken 2014 for Windows. The other software involved is pretty generic or online so should be available on all platforms.
Wednesday, 27 August 2014
Tuesday, 26 August 2014
- Wall Street Journal
- Vanguard’s Principles for Investing Success (link)
- see recent publications from the Bank for International Settlements
Friday, 22 August 2014
Wednesday, 20 August 2014
Friday, 15 August 2014
Tuesday, 12 August 2014
Is the Australian model in trouble? | FT Alphaville
Thursday, 7 August 2014
Wednesday, 23 July 2014
Tuesday, 22 July 2014
Friday, 18 July 2014
Wednesday, 16 July 2014
Tuesday, 15 July 2014
Monday, 14 July 2014
Friday, 11 July 2014
Wednesday, 9 July 2014
Friday, 4 July 2014
5 traps in using the dividend yield - Morningstar.com.au
While dividends usually mark a profitable company, they are not the definitive marker of a good share. Using a low-cost broker and having shares that appreciate in value more than they pay in dividends could sometimes be a more efficient way to accumulate wealth.
Tuesday, 1 July 2014
'via Blog this'
Monday, 23 June 2014
Anglo-Saxon economies should envy Germany’s rental culture - FT.com
Tuesday, 17 June 2014
On-line Charts :: Dukascopy Bank SA | Swiss Forex Bank | ECN Broker | Managed accounts | Swiss FX trading platform
Wednesday, 11 June 2014
Monday, 2 June 2014
New funds are being introduced in Europe and the core line of funds already on offer will see their fees cut anywhere from 5 to 58 percent. More details on the Core series you can find here.
BlackRock Cuts Europe ETF Fees in Race With Vanguard for Assets - Bloomberg
Thursday, 29 May 2014
There's a lot of content and advice available.
Bogleheads Investing Advice and Info
Wednesday, 14 May 2014
Monday, 12 May 2014
Source: Tracking Performance after transferring shares - Quicken Community
Thursday, 1 May 2014
" the report also found that the four most expensive countries to live in are Switzerland, Norway, Bermuda and Australia"
Monday, 14 April 2014
Friday, 11 April 2014
Thursday, 10 April 2014
The retrieved information includes the card brand, issuing institution, card type, level, country and so on.
Wednesday, 12 March 2014
Raising rates have a devastating effect on fixed income securities, mostly bonds. This concerns conservative investors and retirees who rely on bonds to deliver a reliable income stream.
Below are some materials that shed more light onto the topic.
- When rates rise - What happens to fixed-income ETFs (link) - iShares
- Raising Rates: A case for active bond investing? (link) - Vanguard
- Risk of loss: Should the prospect of rising rates push investors from high-quality bonds? (link) - Vanguard
- Why invest in bonds when interest rates can only go up? (link) - Vanguard
- The role of fixed income as part of a diversified investment strategy (link) - Vanguard
Monday, 24 February 2014
Australia vs Austria in World Country Facts
What puzzled me the most is that the GDP figures are really close, within 5% of each other. Australia is just a tad higher. However, unemployment in Austria is lower and the current account balance is positive. Not sure how old is the data though.
From the quality of life perspective, there are 14% of Australians working long hours vs ~9% of Austrians.
Another important factor is the GINI Coefficient, which measures the degree of inequality of income.
Thursday, 13 February 2014
Monday, 10 February 2014
Tuesday, 4 February 2014
6 lessons from The Wolf of Wall Street - Morningstar.com.au
Sunday, 26 January 2014
Monday, 20 January 2014
Saturday, 4 January 2014
"8 Million Acres of China's Farmland is Too Polluted to Farm; All Farm Products From China Suspect; Iceberg Principle" http://feedly.com/k/1lFRZbu