MONEY MASTER

Well I was really busy lately and that's why the failure to maintain the update on this even though I believe it is important. In the world of financial and investment, it is best that we learn the language right. Anyway, today I'm gonna share a key part of investment, in strategy and planning on the suitable investment plan for oneself, it is first important for us to find out about ASSET ALLOCATION . Asset allocation In one of the dictionary, asset allocation is defined as a financial strategy for reducing risk in an investment portfolio in order to maximize return. So how do you really reduce risk and maximize the return in your portfolio? Asset allocation aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance and investment horizon.  Depending on the amount of your investment, it is important to look at the few key investment types...equities, fixed-income, and cash and equivalents - h...

It's Sunday again....I'm excited to learn another new term here...and this will be something familiar to the people staying at the States. The Wal-Mart effect... Heard of the Wal-Mart effect? If you have not heard of it, buy the book...there is actually a book on Wal-Mart effect by Charles Fishman.  Anyway, in this post, I will give you a brief understanding of what the Wal-Mart effect is...it is the economical impact felt by local businesses when a large firm such as Wal-Mart opens in the area. The effect can be seen as it forces the smaller firms to run out of business or the reduction in wages for competitors' employees.  These are the main reasons why local stores are against the introduction of Wal-Marts into their areas. However, there are some positives from these effects...as Wal-Mart effect helps to curb inflation and keep productivity at an optimum level. 

During most of the studies related to investment, some risks will be mentioned such as credit risks, liquidity risks, and many more.  Here is one new term that I learned throughout this week though...the "reputational risk" .  If you have not heard of it, this will be important because reputational risk is a hidden danger that can hurt and pose a threat of survival to even the biggest and best-run companies. The problem with reputational risk is that it could erupt out of nowhere without much sign to investors. It is difficult to quantify the risk as well but it is important. Reputational risk can also arise from the actions of errant employees, such as the massive trading losses disclosed by some of the world's biggest financial institutions from time to time. In an increasingly globalized environment, reputational risk can arise even in a peripheral region. There are a few ways for investors to look at when considering reputational risk. Look at how th...

Well, now that I'm in the Investment department, I decided that maybe it's time to share some of the investment terms that I've learned....hopefully, there will be those of you out there who could share more in the process as well, so that we can learn together. Anyway, today I learned about this term:  'Maastricht Treaty' , formerly known as the Treaty on European Union (TEU) Well, it is an important term because this is a treaty that is responsible and lead us to what is known as today, the "European Union". It's known as Maastricht Treaty because it was signed in Maastricht, a city in the Netherlands, on February 7, 1992, by the leaders of 12 member nations. This treaty signifies the serious intentions for all countries to create a common economic and monetary union. The treaty required voters in each country to approve the European Union, which proved to be a hotly debated topic in many areas. The agreement took effect on Novemb...