Elizabeth Shaw, Author at Shortform Books

The Random Walk Hypothesis: Is the Market Random?

What is the random walk hypothesis? How does it prove that the future of stocks doesn’t depend on its past, but instead resemble a “random walk”? Many investment theories rest on the assumption that the past movements of stocks give an indication of future trends. However, Burton Malkiel’s random walk hypothesis debunks this idea, claiming that the rise and fall of the stock market resembles a “random walk” rather than any noticeable trends. Keep reading for more about the random walk hypothesis.

Types of Financial Advisors: 4 You Should Know

What are the different types of financial advisors? Which types are more effective? According to economist Burton Malkiel, there are four main types of financial advisors: investment advisors, standard advisors, automated advisors, and hybrid services. Understanding the different types of financial advisors and what services they offer can help you make the right choice. Learn about the different types of financial advisors below.

Retirement Investment Strategy: Planning Your Future

What is the best retirement investment strategy? What advice will help you plan effectively for the future? If you want to have a comfortable retirement, it’s important to have a financial retirement plan. Knowing the different options available, including lifecycle funds and annuity will help you build an effective retirement investment strategy. Keep reading for the best retirement investment strategy.

Bad Marketing Examples: Learn From These Mistakes

What are some examples of bad marketing? How can you learn from these mistakes and improve your marketing strategy? There is a lot that can go wrong when creating marketing strategies. From improper wording to emotional insensitivity and confusion, it’s important to avoid these bad marketing mistakes in your own campaigns. Here are some examples of bad marketing you can learn from.

The Tulip Craze: History’s First Economic Bubble

What was the tulip craze? How could flowers become so valuable in such a short space of time? The tulip craze in 17th-century Holland is widely known as the very first economic bubble. The price of tulips escalated so much that people sold their valuables to buy tulips, and could buy assets like houses with them. This might seem absurd, but here’s an explanation of what happened. Learn more about the tulip craze below.

Technical vs Fundamental Analysis: The Key Differences

What is the difference between technical vs fundamental analysis? Why might a combination of both be the best approach? Technical vs fundamental analysis are the two main methods of security analysis. Technical analysis aims to predict future stock prices using graphs of past price movements, while fundamental analysis opts for an in-depth study of the firms’ balance sheets, taxes, and earnings. Each approach has its advantages and disadvantages. Keep reading to find out the difference between technical vs fundamental analysis.

The Best Investments For Your Risk Tolerance Level

What is a risk tolerance level? What types of investments are best suited to you? Your risk tolerance level measures how comfortable you are with risk and determines the stocks you should invest in. If you’re nearing retirement (or you want to sleep well at night), you might choose investments with “Low” and “Moderate” levels of risk. If you still have many working years ahead of you (or you’re a thrillseeker who’s willing to suffer sleepless nights), then you might opt for assets with “High” risk levels. Keep reading to find out your risk tolerance level and recommended investments.

The Risk Parity Strategy: How to Reduce Risk

What is the risk parity strategy? How can this approach reduce investment risks? The risk parity strategy is an approach to portfolio construction that promises reduced risk. Unlike other theories, the risk parity strategy focuses on risk allocation, prioritizing low-risk assets. Find out more about the risk parity strategy below.

Examples of Good Marketing You Can Learn From

What are some examples of good marketing? What tactics did these companies successfully implement? In Contagious, Jonah Berger discusses effective marketing strategies used by companies, from Apple’s earphones to the gamification of airline travel. Knowing these examples of good marketing can help you apply the lessons to your own marketing strategy and improve your approach. Learn from the examples of good marketing discussed below.

The Housing Bubble of 2008: What Happened?

What was the housing bubble of 2008? What caused this devastating financial crash? The stock market crash and housing bubble of 2008 saw a huge decline in house prices from the 2006 peak. The fallout was huge, with many big financial institutions facing considerable losses. The causes are debated, but essentially too many people took on loans they couldn’t afford, leading to an inevitable crash. Here’s what happened during the housing bubble of 2008.