mypersonalfinance.chInvesting means to allocate money in the expectation of a future benefit. It’s a core pillar of your personal finance. But before you invest in any financial product, you should invest in your own financial literacy. This entry level guide will provide you with the essential background knowledge that you need before you start your…Continue readingInvesting 101 (1/2)
Timing the market is a typical beginners mistake. You’ve probably done it already. What does it mean to time the market? And why should you avoid market timing? Let’s find out. What is market timing? “There will be a correction in the next 3-6 months”. “Better to wait until prices drop further”. “We’ve seen the…Continue readingMarket timing and perspectives on why to avoid it
More than half of the world’s equity market is American [1]. This makes it very common to invest in funds holding American companies. These companies trade in USD. Most earn revenues in multiple currencies: USD, JPY, EUR, CNY etc. On top of that, the fund itself may trade in CHF or EUR. How does it…Continue readingFX exposure and currency-hedged ETFs
One of the biggest realizations that I had when I first started my investing journey is the huge impact that small changes have over the long run. I don’t think I’m alone on this one. The compounding effect (or how things ‘stack up over time’) is counter-intuitive and relatively easy to underestimate. In this entry…Continue readingThe impact of TER and taxes on long term returns