For beginners, it is advisable to familiarize themselves with three types of bonds: U.S. Treasuries, investment-grade bonds, and emerging market bonds.Previously, we mentioned that individual bonds have high purchasing costs, making them less suitable for beginner investors. Next, we will delve into bond ETFs to explain this point.
Q1: Should buy bonds when the stock market is in a bull market (when prices are very high)?One opinion is that bonds are not worth considering because their long-term returns are lower than stocks. Is this opinion correct?
How to choose funds that will make money is a primary goal for many investors, but how should one go about selecting funds? This article shares three steps for selecting fund investments, which I believe are fundamental principles when starting the fund selection process. These steps aim to provide some criteria for consideration, helping you make judgments that suit your needs when choosing funds.
"Can I achieve the same rate of return as Buffett?" A student once asked me this question.
What is Pre-market trading in U.S. stocks？The normal trading hours for the U.S. stock market are from 09:30 AM. to 4:00 PM. on trading days, without a break at noon, allowing investors to trade stocks during these regular hours. However, besides these hours, pre-market or after-market trading is also possible in the U.S. stock market.
U.S. stocks are traded on multiple exchanges, with the two most important being the New York Stock Exchange (NYSE) and the NASDAQ. In addition to these two major exchanges, there are other secondary exchanges and over-the-counter (OTC) systems where investors can trade U.S. stocks. Here are some of the primary U.S. stock trading markets:
We can think of the circuit breaker mechanism as a "fuse". When the market fluctuates too violently, the fuse will melt and break, suspending trading activities in the market temporarily. Trading will resume after a while.
Currently, the United States represents the most significant stock market globally, with its overall market value accounting for more than 50% of the global stock market and hosting the world's most important companies.
Stock buybacks are a very popular method among corporations. If executed properly, they can benefit shareholder equity, but if mismanaged, they can also lead to company difficulties. Warren Buffett, in his 2011 letter to shareholders, mentioned that Berkshire Hathaway would only repurchase shares under two conditions:
The Buffett Indicator is a renowned metric used to assess whether the current stock market is overheated or undervalued. It was highlighted by the legendary investor Warren Buffett in a 2001 interview with Forbes magazine. This indicator measures the ratio of the total market capitalization of the stock market to the Gross Domestic Product (GDP). Buffett pointed out that this ratio is the best indicator for determining whether the overall stock market is overvalued or undervalued. This indicator often appears in various media reports, especially when the figures are at extreme levels.