Category: Financial Independency 101

Portfolio Performance Metrics

When choosing an investment strategy, it’s important to have a solid understanding of past performance metrics to determine potential risks and returns. In this article, we’ll discuss some of the common metrics used to evaluate investment performance. General Performance Metrics Time-Weighted Returns When measuring the performance of a portfolio, returns are simply the money gained […]

Understanding ETFs: How Exchange-Traded Funds Can Benefit Your Investment Portfolio

I realized that I hadn’t yet made a super explanatory post on ETFs, let’s fix it right away. Exchange-traded funds, or ETFs, have become increasingly popular in recent years. As a way for investors to gain exposure to a variety of different assets, sectors, and markets. According to data from the Investment Company Institute, ETF […]

Be faithful to your asset allocation

We have already talked about asset allocation, today we will see how to remain faithful to it, even in the worst moments. We have already seen investor biases and in this case the disposition effect helps us maintain our position even at a loss, waiting for it to turn positive again. Paradoxically, the problem comes […]

Market efficiency & financial crisis

We can summarize the market efficiency concept with the following epigram: “Prices reflect all available information.” A market is efficient if all investors know the same information and if the information are relevant to determine the value of a company. Efficiency Definition Fama, the same of the previous post, in 1965 defines 3 forms of […]