Investments are assets that individuals own and management with the intent of making a profit and adding to and growing their wealth. Stocks and Bonds are assets for example.
Linked Menu Last Update: March 9, 2024 Time Value of Money (TVM) Calculator Introduction Time Value of Money Equations General Steps for Using Calculator Calculator Tool Introduction Calculator Tool TVM Examples using Calculator Tool Conclusion Appendix 1 – Time Value of Money Governing Equations (for Fixed Rates) Introduction Time Value of Money The Time Value […]
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Last Revision: November 20, 2022 Asset Class Performance: Introduction Understanding asset class performance is an important part of assembling the proper investment portfolio mix. This post analyzes the historical performance of various assets using ETF and Mutual Fund proxies. Its purpose is to show the historical ranked returns of several asset classes. the volatility
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Last Update: November 7, 2022 Introduction This post provides a broad review of available investment asset classes. The sec.gov glossary defines an investment as “..money that is put at risk for the purpose of making a profit”. In this post, we’ll review the various investment choices available to United States citizens. I think there are
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Last Revision: September 29,2022 Introduction The power of compounding allows money to grow exponentially over time. That is, over time, the growth accelerates! So start investing (for yourself or your kids) as early as possible to maximize the amount of money you’ll have in the future. Schematic 1: Compounding – (a) grows exponentially by (bx)
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Last Revision: October 17, 2022 Summary In seven graphs, this post shows 94 years of expected returns for various stock and bond allocations. These graphs plot annualized returns for 3, 5, 7, 10, 15, and 20 rolling yearly periods and show that: Variability of outcomes increases (risk increases) as the proportion of stocks relative to
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Last Revision: October 17, 2022 Summary Moving average (rolling average) computations help us analyze trends. They are often applied to time series data analysis where short term fluctuations are dampened out. As a result, the investor gleans further insight by studying the “smoothed” data. This post shows how to compute the moving average with two
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Last Revision: August 14, 2022 Summary This post describes how the long term performance of the S&P 500 Total Return Index is affected when some of the best days are removed. Introduction I was recently perusing Chapter 2 of my copy of Charles D. Ellis’s book, “Winning the Losers Game” (3rd Edition, New York,McGraw-Hill,1998). The
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Last Revision: October 17, 2022 Introduction CAGR, the Compound Annual Growth Rate, is used to compute financial returns. In this post, we’ll describe how to compute the CAGR by first laying down some foundational concepts and then going through a few graphical examples. As you read this post, keep the following in mind. The asterisk
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Last Revision: October 17, 2022 Introduction This article describes the historical performance of the U.S. Stock Market as represented by the S&P 500 index. It also provides some useful learnings that can be applied to our investment decisions. As you read through the material, please refer to the Financial Glossary which will open as a
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