The opportunity cost is something every investor should keep in mind permanently. This is what is left to gain by not having the money invested anywhere else other than that found today.In theory everyone (except for rare exceptions) is provided at a cost incurring opportunity because you can not have all the assets invested permanently in the perfect investment.In practice it is unrealistic to continually seek the best investment the world but...more
Diversification is based on prudence. Diversifying is to accept a lower return in exchange for a lower risk also.If an investor was able to know what is the most value will go up in the future would not need to diversify, since in that case would invest all his money on that value and get the maximum return.But in practice we do not know what that ideal value in advance so that the most prudent, even for very experienced investors, is to resort...more
Ideally find some way or system to detect the minimum (and maximum) of market movements. But it is not realistic. Some tools try to detect the minimum (and maximum) of each movement, such as graphic and technical analysis, Japanese candlestick or candlesticks, the analysis of money flows, etc.. But no tool is infallible and sometimes give false signals.Many investors expect to get advice from someone more experienced to tell them how far it will drop the stock to buy the shares that are scheduled at a better price and thus increase profitability. But to perceive the true difficulty of the task is to put it in perspective:One investor who was able to know the highs and lows become a millionaire in a short space of time. For little money to count, thanks to the leverage of derivatives such as options and futures, the results would be absolutely spectacular.Therefore, realistic strategies should be designed bearing in mind that you will not buy the smallest and will sell at the highest. Also, to have a good return, even very good, not essential.A good solution when entering stock diversification is temporary space that is shopping at the time with malice aforethought. Two possible...more
It is commonly accepted that the vast majority of mutual funds fail to even match the performance of its benchmark index (IBEX 35, Eurostox 50, S & P 500, etc.). Long term. Some may beat during certain periods of time, but are not able to overcome long periods. There have been many studies on all mecados and the result has always been the same,...more
The big Spanish banks (Banco Santander, BBVA, Banco Popular) and any other company, such as Iberdrola, have programs of reinvestment of dividends to its shareholders. For example, dividends that are charged to the shares of Banco Santander which are held in the portfolio are used to buy more shares of Banco Santander.To qualify for these plans only...more
The stock index (IBEX 35, Stock Exchange General Index of Madrid, S & P 500, Dow Jones, Eurostoxx 50, Xetra DAX, CAC 40, etc.) Do not include dividends paid by companies. This means that when, based on a particular index, a means of public communication that the stock is up X% in a given period in that calculation is not including dividends paid by companies that comprise the index during that period. If such dividend included the revaluation would be much higher.You can include these dividends in the calculation of the indices. The called up "total indices" are the "brothers" of the normal rates that do take into account the dividends. In the Spanish stock exchange is the case of IGBM and his "brother", the ITGBM: IGBM: General Index of Madrid Stock Exchange. The index is published every media daily.ITGBM: Total General Index of Madrid Stock Exchange. It is the IGBM but considering that distribute dividends the companies comprising the index. Do not publish any media daily. It's pretty hard to find his quote because it advertises very little, but is available on the website of stock exchanges and markets .Both indices base 100 definitely took 31.12.1985 (until this year both...more
Average, or pyramiding, low is to buy more shares of a value that already has at prices below that made the initial purchase.Do it right or not depending on the value and the strategy that uses the inverter.I think when you trade should not be...more
The Spanish stock market is one of the cheapest (in terms of transaction costs), efficient and transparent in the world. In addition, many Spanish companies are among the strongest and best managed in the world. It is therefore logical that a large...more
Financial agreements can be accessed by any two people who are married or are preparing to marry. Financial agreements are binding - in that sense they are very hard to overturn - but they do need to satisfy the official requirements specified in...more
Have you been looking for passive income ideas to help you earn a great income online that you can achieve financial freedom with? Thousands of people everywhere are searching for the same thing and you are about to find out the most powerful ideas...more
Many Americans worry about retirement planning. Financial advisors with a certificate from a retirement institute can help navigate the complexities of retirement planning. About 50% of US workers over the age of 45 do not know what they need in...more
It is tempting to call binding financial agreements pre-nups, but this ignores most of the picture. Binding financial agreements may appear at any time before, during and after a marriage ends. In essence, these describe the whole process of what...more