Inflation depletes the buying power of money gradually, thus, it is an insidious yet constant challenge to your financial security. Although inflation affects all classes of assets, it has been argued that stocks are the class most capable of protecting and increasing wealth against inflation. Let’s try to figure out…

Dividends and Capital gains. Working in collusion, they represent the foundation of stock market activity and equity investment, a compelling strategy for wealth building over the long term. In order to make intelligent choices, it is worthwhile to know both the definition and what the result is in terms of…

Equity/stocks are commonly seen as the foundation of long-term wealth generation. Although they may be volatile in the short term, equities have historically outperformed other asset classes such as bonds, real estate, and commodities over extended periods. This superior performance is due to a number of factors (e.g., compounding returns,…

Volatility is one of the most basic concepts in finance and one that gets often misinterpreted, which is, nonetheless, a concept of paramount importance to understand. It defines the degree of asset price volatility over time, which is commonly defined as standard deviation or variance. While volatility in high frequency…

The historical performance of asset classes is a large input for the good investment decisions. Over the years, different asset classes—stocks, bonds, real estate, and commodities—have demonstrated unique performance patterns influenced by economic cycles, geopolitical events, and market conditions. The behaviour of these trends can be used to provide to…

It is also necessary to have knowledge on various type of assets in regard to wealth creation and financial goal attainment. Stocks, bonds, real estate, and commodities all have different properties, risks and return. Portfolio diversification among these classes is a risk mitigation tool and performance over the long term…