Investing

My 2023 Year-End Portfolio Part 2

Elmads shared a comprehensive review of his 2023 year-end investment portfolio, detailing a 43% equity allocation that underperformed compared to major indices like the S&P 500. Holding investments in three financial brokerages, he discussed investment decisions in both local and international stocks, including challenges like managing capital gains tax and the inefficiency of frequent trading. Reflecting on both successful and underperforming stocks, he emphasized the importance of personal improvement and adapting investment strategies. Elmads highlighted the significance of loving the process and competing with oneself rather than others, maintaining a positive, forward-looking approach amidst the financial ups and downs.

By Evan Louise Madriñan, ago

Beyond the Score: The Business of Credit Ratings Explored

When deciding which friend to financially assist with $2,000, one might consider trustworthiness and financial behavior, similar to how a credit rating agency assesses a company or nation’s ability to repay debt. Credit rating agencies emerged in the 19th century to support investors in railway companies by evaluating the creditworthiness of business ventures. These agencies play a crucial role in today’s debt markets by providing ratings that influence lending decisions. Despite their importance, the industry has faced criticism and calls for regulatory reform, particularly after the 2008 financial crisis highlighted issues like conflicts of interest and the accuracy of ratings.

By Evan Louise Madriñan, ago