Category: Technical Investors
I am a CPA Candidate sharing my experience building my portfolio while in my 20s. During this process of sharing information online I hope to increase free financial literacy access for all.
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What is Interest Rate Risk and Why is it Important?
Interest rate risk is the possibility that changes in interest rates will negatively affect the value of your assets or portfolio. This risk can impact both borrowers and investors, leading to losses when unexpected fluctuations occur. Imagine you have investments in bonds; if interest rates rise, the value of your bonds might decrease, as newer…
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5 Things to Know About Private Equity Before You Invest
Investing in private equity can be an appealing opportunity for many investors looking to gain exposure to private markets and diversify their portfolio. This type of investment involves committing capital to PE firms that buy and sell privately held companies or purchase public companies and take them private. Understanding the key aspects of private equity…
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What is Tail Risk and Why is it Important?
Tail risk in finance refers to the risk of an investment moving beyond a certain point in the tail ends of a probability distribution. This kind of risk happens when there are extreme events that have significant negative impacts on portfolios. In finance, understanding tail risk is vital because it involves potential losses that are…
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What Is Systematic Risk for Investors?
When investing, you may often hear the terms “market risk” or “systematic risk.” These refer to the potential for an investor to experience losses due to factors impacting the entire market rather than just a specific company or sector. Understanding systematic risk is crucial because it can’t be avoided through diversification alone. Systematic risk, also…