The ‘price’ of things is a crucial consideration for any investor. Every asset class can be cheap or expensive. Equities are no exception. What does it mean for equities to be ‘cheap’ or ‘expensive’? In this entry, we’ll review the PE ratio, a key metric on the relative value of equities. From valuations to the…Continue readingThe PE ratio and stock market valuations
Month: May 2020
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How pillar 3a works
Pillar 3a is one of the most popular investments for Swiss residents. In fact, it’s somewhat unpopular not to contribute to pillar 3a. In this entry, we’ll discuss how pillar 3a works. We’ll also review the biggest pros and cons of pillar 3a investments, as well as some important investment considerations. About this entry There’s…Continue readingHow pillar 3a works
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How bond ETFs work
The ETF market has traditionally been dominated by equity ETFs. But bond ETFs are rapidly gaining traction [1]. Bond ETFs are the best option for retail investors to invest in bonds. How do bond ETFs work? What do you have to know before investing in bond ETFs? Let’s find out. Before you begin… Make sure…Continue readingHow bond ETFs work
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How bonds work (2/2)
Both stocks and bonds are cores pieces of an investment portfolio. However, understanding how bonds work isn’t easy. It often remains a mystery for many investors. In this continuation entry, we’ll review the impact of interest rates in bonds. We’ll also explore risks associated with bonds and how bonds trade. Bonds and holding period You…Continue readingHow bonds work (2/2)
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How bonds work (1/2)
Both stocks and bonds are cores pieces of an investment portfolio. However, understanding how bonds work isn’t easy. It often remains a mystery for many investors. In this entry, we’ll review how bonds work, how they’re valued, and why the ‘yield to maturity’ is so important. In a second part, we’ll explore the relationship between…Continue readingHow bonds work (1/2)