The World's Best Book Summaries
Are you looking for the best examples of economic bubbles in history? What can you learn from these examples? From tulipmania in 17th Century Holland to the recent speculation around bitcoin, economic bubbles can be seen throughout history. Caused by public speculation and irrational optimism, economic bubbles are an inevitable consequence of the stock market. Keep reading for a complete list of economic bubbles in history.
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.
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.
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.
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.
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.
What is guaranteed basic income? What are the objections to universal income? Guaranteed basic income is a practice where the government pays each citizen a bare minimum wage every year. The hope is that the guaranteed income will remove the constant worry for survival that leads to depression. Critics have objected on the grounds that it will be very expensive and will make people lazy. Read on to learn more about the advantages and criticisms of guaranteed basic income.
How does having no hope for the future cause depression? Why is it so important for you to feel in control of your life? Having no hope for the future makes it impossible to plan ahead since you can’t picture a better and secure life for yourself. This can cause depression to set in. Being able to envision an attainable, happy life is very important because, without it, you lose control over your life. Loss of control naturally triggers depression. Read more about how having no hope for the future leads to depression.
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.
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.