Traditional investment approaches assume investors have equal access to market information and make rational, emotionless decisions. Behavioral finance, championed by Richard Thaler, Daniel Kahneman, and Amos Tversky, challenges this assumption by recognizing the role emotions play. But the ability to quantify and manage these emotions eludes many investors. They struggle to maintain their investment exposures through the ups and downs of market cycles. In this post, I introduce a holistic asset allocation process intended to manage the phenomenon of regret risk by considering each client’s willingness to maintain an investment strategy through market cycles. I also evaluate the suitability of…
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Court documents suggest that TikTok executives are aware of the app’s potential harm to teenagers, according to reporting by NPR and Kentucky Public Radio.Fourteen U.S. attorneys general sued TikTok earlier this week, claiming that the app harms children’s mental health. Much of the material in those suits was redacted, but reporters were able to read some of that material by copy-pasting.According to Kentucky’s lawsuit, the company’s own research shows that “compulsive usage correlates with a slew of negative mental health effects like loss of analytical skills, memory formation, contextual thinking, conversational depth, empathy, and increased anxiety.”In addition, the suit includes…
Image source: Getty Images Millions of people in the UK regularly tuck money into ISAs to keep their gains out of the taxman’s reach. A good portion choose to invest in the stock market, as shares tend to easily outperform cash over time. According to the UK government, Britons had approximately £430bn invested in Stocks and Shares ISAs by the end of the 2022/23 tax year. This suggests an average account size of about £93,000. However, ISA wealth is highly skewed. Figures from 2021 highlighted around 4,070 ISA millionaires owning portfolios worth an average £1.4m, with the top handful managing…
Image source: Getty Images Looking for ways to create life-changing wealth? Here’s three tactics I’d use to try and maximise my returns with UK shares. Slash tax costs The first step I’d take it to set up a tax-efficient investment vehicle. There are currently two on the market that protect individuals from both capital gains tax (CGT) and dividend tax. The first is the Individual Savings Account (ISA). Under this category, investors can buy shares, trusts, and funds in a Lifetime ISA and/or a Stocks and Shares ISA. The other option I have is to open a Self-Invested Personal Pension…
By Daniel Leussink and Irene Wang HIROSHIMA, Japan (Reuters) – Almost eight decades after an atomic bomb devastated her home town of Hiroshima, Teruko Yahata carries the scar on her forehead from when she was knocked over by the force of the blast. The U.S. bombs that laid waste to Hiroshima on the morning of Aug. 6, 1945, and to Nagasaki three days later, changed the course of history and left Yahata and other survivors with deep scars and a sense of responsibility toward disarmament. The awarding of the Nobel Peace Prize on Friday to the Nihon Hidankyo group of…
Energy Transfer (NYSE: ET) stock has had a solid run recently. The stock has risen by over 17% this year and has about doubled since the end of 2021.Given that solid performance, investors may be wondering if the stock is a buy, sell, or hold at this point. Let’s take a look at each case.The buy case for Energy TransferThere are a number of facets to the bull case for Energy Transfer. The first is the solid growth opportunities in front of the midstream master limited partnership (MLP). The company has one of the most robust expansion backlogs in the…
Image source: Getty Images Investing in high-yield shares can be a great way to build long-term wealth. By targeting and then reinvesting large dividends, I can effectively harness the power of compounding. This can exponentially grow the size of my portfolio over time. The London stock market is packed with excellent stocks with sizeable dividends today. Here are three of my favourites. Each of their forward dividend yields smashes the FTSE 100 average of 3.6%. CompanyForward dividend yieldForesight Solar Fund Limited (LSE:FSFL)8.7%The PRS REIT (LSE:PRSR)4%TBC Bank Group (LSE:TBCG)8.3% If I invested £14,300 equally across these three dividend shares, I’d enjoy…
Eli Lilly and Company, Pharmaceutical company headquarters in Alcobendas, Madrid, Spain.Cristina Arias | Cover | Getty ImagesThe U.S. Food and Drug Administration on Friday agreed to reconsider a decision it made last month to bar drug compounders from selling their own versions of Eli Lilly’s blockbuster weight loss and diabetes drugs.The agency said in a court filing it would now allow compounding pharmacies and facilities to keep providing the drugs while it reviews whether there is a shortage of their active ingredient. The compounding versions of the drugs are cheaper for patients than the brand-name versions.The decision was in response to a…
JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:)’s Google and Apple (NASDAQ:) to block Chinese fast fashion e-commerce firm Temu in their application stores in the country so it cannot be downloaded, a minister said on Friday. The move was intended to pre-emptively protect the country’s small and medium-sized businesses against cheap products being offered by PDD Holdings’ Temu, communications minister Budi Arie Setiadi told Reuters, even though authorities have not found any transactions yet by its residents on the platform. Temu’s rapid growth has triggered scrutiny over its low-cost business model of sending parcels to customers from China by several…
Liam Lawson is gearing up for a significant opportunity as he steps into the Red Bull car for the last six rounds of the 2024 Formula 1 season. This transition follows the abrupt departure of Daniel Ricciardo from the team, announced after the Singapore Grand Prix. Lawson previously filled in for Ricciardo during the 2023 season when the Australian suffered a hand injury, and now he faces a crucial moment in his career, with the potential for a full-time seat in the 2025 season at stake. This stint represents an intense audition for Lawson, who will be under the watchful…