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Important questions to ask when someone yells “diversification!”

What are the metrics of diversification that really matter?

• Credit or Default Risk: Default risk is the chance that the issuer of the bond you purchased will not repay your principal or interest (in full) at the...

Diversification; be specific

“Diversification” - hands down the most overused term in any industry. Why do people love this term and why is it so universally revered? Anyone that owned a small number of Tesla or Apple shares a few years ago is certainly wishing they did not “diversify”...

The thought of shopping evokes different reactions from people, some people’s expressions light up at the thought of going shopping while other people are unable to hide their grimaces. Whether you are shopping out of necessity or just for therapy, most of us are searching for the best...

2019 dispelled three huge misconceptions about investing 

• The Jamaican Stock Market is more attractive than the U.S. stock market 
• Bonds can’t deliver growth
• You can’t lose with Real estate 

In 2019, the S&P 500 delivered a higher return to investors for less risk than the...

How to identify a bubble?

What is a bubble? Investopedia defines it as “a rapid escalation of asset prices followed by a contraction, often created by a surge in asset prices that is fundamentally unwarranted.” In layman’s terms, this is when prices of assets like stock, real estate etc...

Familiar names offer a false sense of security

Common investing mistake number 2: Familiar names are low risk. Just because you are familiar with the name of the company and it’s business line, does not mean that bonds issued by the company are “low risk”.

A good example is Barbados...

Over the next few weeks, we plan to discuss the 3 biggest mistakes that local investors are making right now. Investors could be earning 15% to 20% MORE per annum by avoiding these common errors. Today, we will discuss the first mistake and discuss the subsequent mistakes in separate...

IT’S GETTING HOT IN HERE

It isn’t only temperatures around the world that are rising; bond prices are rising as well. Why is this happening and how should you invest in this environment?

Bonds prices have an inverse relationship to interest rates; when interest rates rise, bond...

Debunking the myths around real estate returns

Over the next few weeks, we plan to discuss the 3 biggest mistakes that local investors are making right now. Investors could be earning 15% to 20% MORE per annum by avoiding these common errors. Today, we will discuss the first mistake...

Your savings in the bank are losing money every day. Keeping your savings in cash is one of the fastest ways to burn a hole in your net worth. This applies to many repos as well. By ignoring the rate of inflation or accepting sub par returns on your investment, you are reducing the future...