Author: John

What is a Managed Futures Fund?

Having a diversified portfolio of investment is crucial for any investor. Traditionally, investors have divided their portfolios into equity and debt investments. With the vast number of options available nowadays, however, the same does not apply. Investors have various options when it comes to building a diversified portfolio. One such …

Who Are Commodity Trading Advisors?

Who are Commodity Trading Advisors? Commodity trading advisors are individuals or institutions that provide financial advice to investors related to future options, futures contracts, etc. Usually, commodity training advisors are professionals who go through a registration process to become an advisor. Primarily, these advisors are responsible for providing trading advice …

Carry Trade in Forex

Forex trading includes buying or selling currencies to profit from the differences in exchange rates. Due to the widespread availability of markets, forex trading has become a popular choice among many investors. There are several strategies that investors may use to profit in the forex market. One such strategy is …

What is Availability Bias?

In any decision-making process, bias can be significantly critical. Simply put, it is an irrational prejudice towards a specific factor. For most individuals, these include tendencies to make decisions without critical thinking or consideration. There are several biases that individuals may face during their decisions. One such bias consists of …

What is Framing Bias?

When making decisions, individuals may come across various biases or heuristics. These biases can impact their decisions adversely. Usually, biases stem from pre-existing beliefs or how individuals perceive information. These biases may also have an impact on financial decisions. One such bias that may exist in finance is the framing …

What is a Sovereign Wealth Fund?

What is a Sovereign Wealth Fund? A sovereign wealth fund represents a pool of funds owned by governments. These funds usually include any surplus reserves that countries accumulate over a period. The government may consist of both central and sub-national governments. Sovereign wealth funds include investments in foreign financial assets …

What is Risk Parity?

Investors need a diversified portfolio to mitigate any risks that come with their investments. During this process, they can use several techniques or approaches. Traditionally, most investors make decisions based on their objectives. However, investors can also build a portfolio based on their risk appetite. One approach they can use …

60/40 Stock to Bond Allocation

Building a portfolio can be a significantly challenging task for investors. Most investors only consider stock and bond investments when constructing their portfolios. This approach has historically been a safe option for investors. While it increased the rewards they received, it also provided them with a safety net for when …

120 Minus Your Age Rule

Asset allocation is a technique that helps investors distribute their portfolios into several asset classes. By doing so, it can mitigate any risks associated with a market. There are several approaches to asset allocation that investors can use. In essence, however, it involves establishing an asset mix and distributing investments …

Liability-Relative Asset Allocation

Asset allocation has long been one of the favourite tools for investors that want a diversified portfolio. With this technique, investors can divide their investments into various asset classes. These asset classes have different markets and characteristics. It limits investors’ losses when one of the markets in which they own …