(The content of post is taken from the course Learn Investing Basics in 2 Hours)

What is a Bond

Bonds are I Owe You Contracts, meaning you are lending some organization money for a given amount of time. Bonds are considered to be one of the safest investment compared to many other assets classes.

Basic Details on Bond

All bonds have a price associated with it. When you buy a bond, you are effectively lending some organization some money. In return, you will be paid interest periodically. This interest payment is called coupon. When a bond matures (meaning when the contract expires), the initial money you lent will…

(The content of post is taken from the course Learn Investing Basics in 2 Hours)

Before answering the question, you might wonder — why do I need $1.23 million? Based on my calculation, if you want to retire with a good lifestyle, then $1.23 million is what you would need if you take an average inflation of 2% into account.

Now, the answer to our million dollar question is quite simple — invest early and invest for the long term. The reason why investing for the long term is so powerful is because of its compounding nature.

Compounding is a…

Journey to mastering investing is a long-winded one. In fact, it is likely a never ending one.

Investing — is the art of preserving and growing your money. Unfortunately, this is such a vital important skill set that is not taught in our current education system. This is another prime example of how our current education system has failed us. This has led to a terrible consequence — the retirement savings of average Americans between 60 to 64 is insufficient, which is at $229k. If you look at the median value, it is horribly lower (sitting at $16k).

Experts advise to save up 10x of your annual salary to survive retirement. The recommended average retirement fund works…

Is the bear really here?

Since October 2018, the SP500 index has dropped by 17% (as of December 28, 2018). By definition, an asset is in the bear market territory when it has dropped by 20% or more. So, by definition, SP500 is not in bear market territory yet. But, Nasdaq has definitely entered that area.

The main question on most people mind would be — what’s next?

But to answer that question, we need to figure out how we get here.

How We Got Here

Let’s recap what happened in October. In October, I posted a forecast that stated the stock market would be volatile and the environment…

How would midterm affect the stock market?

In our last article, we gave an outlook for the stock market, which cited how the midterm can influence stock movement. Well, today (November 6, 2018) is the midterm election. Democratic party is projected to win the house, which is expected to be good for the market. Here is our analysis why it would be good for markets but the outlook remain cautious.

Why Democratic Party Winning House is Good?

The first reason is Democratic Party will block any additional tax cut. Additional tax cut would mean US will need issue more bonds, which will increase US Treasury Yield. …

Since the beginning of October 2018, the SP500 has dropped by almost 10%. It is a very rare situation for prices to drop this fast. While I did had a sense the market would drop, I definitely did not expect it to drop this quarter. I was expecting it to be next year.

In this article, I would like to accomplish the following: (i) understand what cause the drop in the market, (ii) what could potentially help the market to rebound, and (iii) provide my outlook for the stock market.

Why the Market Dropped for the Last 3 Weeks

The timing of this drop was very hard to predict…

Enterprising investing is very similar to hiking on a risky yet rewarding path

In my last blog post, I have touched on the investment options available for the public and why buying index funds is an attractive option. I would like to use this blog post to take a look at the rewards and risks of more entrepreneurial investing.

Let’s begin by defining the term — Enterprising Investing. Enterprising Investing is simply the act of dynamically selecting stocks that one thinks that they will go up within some time frame. This term was coined in Benjamin Graham’s book — “The Intelligent Investor”. …

Investing has been a popular term since the beginning of industrial revolution. Starting from May 2017, I started to actively invest my money. I have faced with successes and failures. I have learnt many valuable lessons through this experience, which I think could help a lot of people to gain a better understanding of the investment arena.

I will be writing several blog posts over the next few months. In this post, I would like to start by sharing reasons to invest and what are some of the investment options available.

Why invest?

Yao-Hong Kok

Making Better Investment Decision Together with Stockenja

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