Building a Smarter ETF Portfolio Using Modern Portfolio Theory How do you decide what ETFs to include in your portfolio and how much to allocate? Modern Portfolio Theory (MPT) offers a clear framework to balance risk and return. Learn how the efficient frontier and tangency portfolio can help you optimize your investments for better results.
Beyond the Risk Floor: Exploring the Opposite Side of Risk Last week, we explored the Risk Floor, a safety net for worst-case scenarios. Today, we introduce the Blue Sky Potential—the upside counterpart. Together, they help you balance risk and reward for smarter, more confident investing.
How Much Risk Is Too Much for Me? Monte Carlo simulations help evaluate investment risk by modeling outcomes and identifying the “Risk Floor" a kind of worst-case scenario. Translating volatility into dollar amounts lets investors visualize potential downside and make informed decisions aligned with their personal risk tolerance.
Beyond the P/E Ratio: Smarter Metrics and Strategies for Modern Investors The P/E ratio is an investors favorite, but is it truly reliable? In this post, we discuss its hidden flaws, explore smarter valuation metrics, and showcase the power of systematic backtesting.
66% Annual Return? Really? Learn how an algorithmic strategy inspired by Benjamin Graham achieved impressive returns by systematically identifying undervalued stocks. This article breaks down the approach and explains the potential rewards and risks involved.
Technology for Investing Welcome to the New Age of Rule Based Investing: You, Python, and ChatGPT! With tools like ChatGPT, even non-programmers can learn to use Python to become confident, data-driven investors.
Technology for Investing How to Test Your Investment Strategy? Tools to develop and test your investment strategy.
Strategy Backtest Are we facing a 'Lost Decade'? What happens if Goldman Sachs is right and we are facing 10 years with 3% annual returns in the S&P500?
Fundamental Investment Knowledge Select your Broker How do you select your broker? Do you even need one?
Fundamental Investment Knowledge 25,000 Money Making Machines? How many ETFs are there? 25,000 globally? How can you get an overview? Let's get to work!
Fundamental Investment Knowledge Who Wants to Be a Millionaire? How easy is it to gain financial independence? When you start early it can be very easy! Testing a SPY Investment Savings Plan with a 40 year Monte Carlo simulation.
Investment Q&A Take Profit or Not? Johannes asked me a question last night. This year, my investments have performed very well. Should I sell and take profits, or wait for a year-end rally? Johannes is a finance professional, and I think it’s partially a trick question! 😀 But many people ask themselves this exact question, especially
Fundamental Investment Knowledge The Moving Average Strategy The Moving Average Strategy is a simple and effective way to identify when to consider getting out of an investment. Was a simple Moving Average Strategy better that the SPY buy and hold benchmark? Yes!
Fundamental Investment Knowledge What is volatility? Volatility is an important measure of risk. How safe is my investment? What does volatility tell us exactly? What is the VIX and what has Fear and Greed to do with it?
Fundamental Investment Knowledge Boosted Buy and Hold Buy and Hold is a simple investment strategy. But in a period like the 'Lost Decade" did not perform very well. Dollar Cost Averaging can help smoothing our performance by saving every month a small amount and therefore benefit from lower prices when prices go down.
Fundamental Investment Knowledge Let's talk about "Buy and Hold" "Buy and Hold" - an investment strategy many talk about. "I just buy and hold". But does it work? Over the last 30 years the SPY ETF generated an average annual return of 10.4% per year. But it comes with a catch.
