Beyond Capital and into Decision Making
Illuminvest
by Daniel Rickard
11M ago
As I enjoy another “winter’s” day on the Gold Coast, my thoughts are pulled towards something rather familiar, yet seldom contemplated upon. It’s investing, but not just in the conventional sense of the term. You see, most of us picture investing as a money-making machine, a way to generate a return on capital. But I think it’s far more profound and intricately linked to our very human essence. Many of you might argue that investing is all about getting your capital to work. True, but there’s more to the story. Investing, in my perspective, is essentially about our interactions with society ..read more
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Stock Market Rhythms
Illuminvest
by Daniel Rickard
11M ago
In the vast theatre of stocks, where unpredictability often takes the limelight, understanding the market’s dance and rhythm is crucial. While the history of stocks might not replicate verbatim, it does strike similar chords, which can be deciphered to a certain extent through the lens of astute observers like Michael Santoli. Santoli’s chronicles for Barron’s offer insights into the past dynamics of the market, which, if studied carefully, provide us with patterns that ‘rhyme’ with the current market situations. His columns, though penned over a decade ago, hold relevance even today, testify ..read more
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The Science of Rebalancing
Illuminvest
by Daniel Rickard
11M ago
By the very nature of being a seasoned investor, you’re already familiar with the fickle waves of the financial market. However, when the waves grow tumultuous, questions arise. A curious investor recently posed a question that resonates with many: “Does rebalancing essentially lock in losses? And when do I stop buying the stock market on sale?” To answer this, let’s first lay a foundation of understanding. Diversification, asset allocation, and rebalancing – these three pillars uphold the sanctum of portfolio management. Diversification spreads your bets, asset allocation gives those bets ..read more
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VDHG vs Single Sector ETFs
Illuminvest
by Daniel Rickard
1y ago
It’s a vibrant afternoon in the world of finance and you are looking to invest. You’re presented with a multitude of investment options, and making sense of them can seem like deciphering a complex, ever-changing puzzle. Two common approaches for those who prefer to construct their own portfolios are Vanguard’s Diversified Series (e.g. VDHG) and constructing a portfolio with Single Sector ETFs. Both have their distinct advantages and drawbacks. Let’s spill the tea and take an easy-going, informative, and humble exploration of these two strategies. Hopefully, by the end of our discussion, you ..read more
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Can You Put A Value On Bitcoin? 
Illuminvest
by Daniel Rickard
1y ago
One can’t help but look at the price action of Bitcoin with admiration. Despite the ebb and flow of fortunes through boom-bust cycles, it persists with unyielding tenacity. Bitcoin has surprised many with its continued resilience during varied market conditions, with some reconsidering its journey into the financial landscape. To truly appreciate Bitcoin’s trajectory, it’s vital to consider its intrinsic nature. Bitcoin is an aspirational currency, an unproven form of money not too dissimilar from gold’s reputation for over a millennium. Money, in essence, has a tripartite function: a store ..read more
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Lesson’s From 2023, While We Unlearn Them
Illuminvest
by Daniel Rickard
1y ago
“Rising interest rates are bad news for shares, especially technology shares.” It was only six months ago when the world of technology stocks was reeling from their worst sell-off in a decade and investors were rudely awakened. Last year saw tech stocks being crushed, with the NASDAQ 100 taking a tumble of more than 30%. This came in the wake of the Federal Reserve’s decision to increase interest rates from 0% to more than 5% In a little over 12 months, a shift that didn’t exactly sing a sweet melody for long-duration assets like growth stocks. And yet, here we stand, in 2023, with the NASDAQ ..read more
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The King & Challenger: VDHG vs DHHF
Illuminvest
by Daniel Rickard
1y ago
In this exploration of Australia’s DIY Financial Freedom Community, we will delve into the realm of simplified investing, particularly focusing on the ‘all-in-one’ approach embodied by funds like the Vanguard Diversified High Growth Index ETF (VDHG) and the BetaShares Diversified All Growth ETF (DHHF). These investment vehicles, offering access to thousands of individual investments globally, have revolutionized the landscape by introducing a streamlined, low-maintenance alternative to traditional investing. From examining the ‘ETF of ETFs’ model and the benefits of multi-asset ETFs to compar ..read more
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The Sense and Nonsense of Tech Valuations
Illuminvest
by Daniel Rickard
1y ago
As an observer of the economic scenery, I’ve watched with great fascination as the world has transitioned from one era to another. Each transformational epoch carries its unique markers, and we find ourselves, once again, in a time of dramatic evolution. The world is buzzing with chatter about a sharp upturn in NASDAQ, fuelled by a palpable excitement around Artificial Intelligence (AI). Commentators are raising their eyebrows in concern, their fingers pointing back at the dot.com bubble and whispering, “Remember what happened back then?” However, before we dive headlong into this conversatio ..read more
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AI and the Future of Civilization
Illuminvest
by Daniel Rickard
1y ago
I’ve been mulling over the most recent insights by Yuval Noah Harari, the acclaimed historian, and philosopher, published in The Economist. Harari, as always, has given us a unique perspective, offering a counterintuitive view on AI that I’d love to delve into today. In his article, Harari makes a rather compelling argument that AI has hacked into the operating system of human civilization. Here’s what he means by that. Since the dawn of the computer age, we’ve been haunted by the fear of AI’s potential to harm, enslave or replace us. But recently, AI has emerged as a potent tool that can man ..read more
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The Unraveling of The Financial Fabric: The Bigger Picture
Illuminvest
by Daniel Rickard
1y ago
As we sit and sip our coffee every morning, reading the raft of new articles on our brightly lit screens, it is so easy to miss the bigger picture. The news about the US debt ceiling might make a brief appearance, to then quickly get drowned in the noise of other stories. However, there’s a lot more to this issue than what meets the eye. It’s actually the fact that this isn’t dominating the investing headlines that grabbed my attention. I’m afraid that this story will start with the U.S. banks but will reveal far more as we look below the water. Some of the macro greats have started heeding w ..read more
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