The usual component that most investors fail to allocate in their portfolio is foreign securities. It is an important component that provides diversification and returns to investors regardless of the portfolio's objective.
Despite unprecedented events constantly surprising the world economy and investors, the US bull market has celebrated its eighth birthday. How long can this bull market last? Bloomberg's Suzanne Woolley gathered advice from six investment experts on where to invest US$10,000 right now.
If only we could predict or somehow know when certain groceries or products will go on offer. It would almost always be a great bargain. But no one really could, probably not even the supermarket owners themselves. Aren't asset prices on the stock markets like that too?
Ever imagine how monkeys would trade if they were given a chance to invest in the stock markets? Monkeys see, monkeys do. That's actually quite similar to Exchange Traded Funds (ETFs), especially those that track a specific country's stock market index, like the Singapore Straits Times Index (STI).
When investors think of portfolio diversification, most would think that buying a basket of stocks or an Exchange Traded Fund (ETF) that tracks an index would be sufficient. But most investors would typically only buy ETFs of stocks in their home country.
This is a slightly edited post written by blogger 15-Hour-Work-Week, which explains his first 3 Guiding Principles underpinning his new investing philosophy.