Wallible Investing Blog: Portfolio, Markets & Strategy
Read concise explainers on portfolio strategy, market drivers, risk metrics, and investing frameworks to make smarter long-term investment decisions.
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Skewness and Kurtosis: practical guide for portfolio risk
Understand skewness and kurtosis, how to read return-distribution shape, and why tails matter for risk decisions.
Expected Shortfall (CVaR) 95% and 99%: practical guide
Understand CVaR 95% and 99%, how it differs from VaR, and how to use tail-risk metrics for portfolio decisions.
Value at Risk (VaR) 95% and 99%: practical guide
Understand VaR 95% and 99%, historical vs parametric methods, and how to use VaR in portfolio decisions without common mistakes.
Recovery Factor: formula, interpretation, and limits
Recovery Factor shows how efficiently a portfolio recovers from drawdowns. Learn the formula, practical reading thresholds, and common …
Free ETF Portfolio Simulator: practical guide
How to use a free ETF portfolio simulator to test a strategy, compare benchmarks, and move to execution with Wallible.
Average S&P 500 return over the last 20 years: how to read it with a PAC simulation
How to interpret the average S&P 500 return over the last 20 years, avoid common pitfalls, and use a PAC simulation for a more realistic …
Ulcer Performance Index: how to read the return-to-drawdown stress ratio
The Ulcer Performance Index (UPI) extends the Sharpe approach by focusing on downside phases only: how to calculate it, when to use it, and …
What is expected return and how to use it
A practical guide to understand expected return, read it inside Wallible reports, and compare it with other performance metrics.
Calmar Ratio and Ulcer Index
How to judge risk-adjusted growth and drawdown pain with two essential risk management metrics.
Unraveling the Secrets: Key Indicators of an Overvalued Stock Market
Is the stock market overvalued or undervalued? It's a question that lingers in the minds of investors and financial enthusiasts alike. In …
Demystifying Options: A Comprehensive Guide to Understanding How They Work
Options are powerful financial instruments that provide investors with flexibility and potential profit opportunities. Whether you're a …
Understanding Risk Tolerance and Its Importance in Investment Portfolio Management
Investing is an important way to grow wealth over time, but it can be risky. The key to successful investing is understanding your own risk …
Understanding Correlation in Investment Portfolio Management
Investment portfolio management is an essential aspect of financial planning, and investors must make informed decisions to optimize their …
How to Use Discounted Cash Flow to Evaluate a Company
When evaluating a company, one of the most important factors to consider is its ability to generate cash flow. However, it is not just the …
Fundamental Analysis vs Technical Analysis: What are the Main Differences?
When it comes to investing, there are two main approaches to analyzing stocks and other financial assets: fundamental analysis and technical …
Maximum Drawdown Meaning (MDD): Formula, Max Drawdown Example
Maximum drawdown meaning, max drawdown formula, and practical MDD interpretation to compare downside portfolio risk.
Top 5 ETFs for Investing in Megatrends
Here are the top 5 ETFs for investing in megatrends.These trends can present unique opportunities for investors to generate long-term growth …
The importance of ROE (Return on Equity) in company valuation
ROE is an important valuation metric because it indicates how efficient the company is in the use of its capital. A company with a high ROE …
Leverage: a double-edged sword for the investor
Leverage is a technique used by investors to increase the potential return on their investments. In simple terms, leverage means using …
How interest rate developments influence the credit market
Interest rate developments are a key factor influencing all financial markets, including the credit and 'distressed debt' markets. In this …
Fear Greed Index: the indicator that reveals market sentiment
Today we look at this index that measures market sentiment and try to understand how it can be exploited in times of particular market …
Compound interest: the secret to growing your savings
Let's see what compound interest is and how it affects the exponential increase in value of one's investment portfolio over the years
Tax Deduction vs. Tax Deduction: What is the Difference and How Best to Use Them?
Today we try to address the difference between these tedious but important terminologies, which can contribute to more savings and …
Investment strategies in the current economic environment: a challenge for investors with the help of ChatGPT (OpenAI)
Let's see how AI (Artificial Intelligence), in particular the famous ChatGPT by OpenAI, constructs a diversified investment portfolio across …
Pension funds in Italy: does it make sense? And what are the pros and cons
The importance of having a pension fund is a crucial issue for the financial stability of our future. In a country like Italy, where it is …
Price/Earning (PE) and Price/Earning to Growth (PEG): how to use these financial indicators to make investment decisions
Let's look at these two financial indicators and how they can be used among the parameters to assess the goodness of a company for its …
Top 5 ETFs by Capitalization: A Comprehensive Review
In this paper, we will take a closer look at the first 5 ETFs for capitalization. These ETFs represent a diverse range of industries and …
Understanding Different Economic Scenarios: How They Impact Your Personal Investments
How does different economic scenarios impact your investment portfolios? We are going to discover it in the following paper
Jim Simons and his Renaissance Technologies fund
Today we find out about one of the best investors and his fund, which has been racking up killer results since the 1980s
Credit Lombard: how to apply for a loan without disinvesting your money
Let's see how Credit Lombard works and how a retail investor can leverage his investment portfolio for tax-advantaged financing
The best resources and sites to learn how to invest in the financial markets
Investing can be a powerful tool for building wealth and achieving your financial goals, but it can also be complex and daunting for …
Ray Dalio: 'Principles for Navigating Big Debt Crises'
Quali sono i punti salienti di questo libro di uno dei più grandi investitori al mondo?
How to manage your investments in an inflationary environment with high interest rates in Europe
Let's look at tips for a retail investor in a high inflation and rising interest rate environment
Investing with Capital Accumulation Plans (CAPs)
Investing can be a great way to grow your wealth over time, but it can also be overwhelming and confusing. One investment strategy that is …
Capital Asset Pricing Model (CAPM)
Let's take a look at how CAPM works and how this model is used in finance
Investing in blue chip stocks according to The Motley Fool
What are the best blue chips of 2022 according to The Motley Fool? We find out in this article
Analysis of Variance (ANOVA)
Let's look at how analysis of variance (ANOVA) is defined and how it is used in finance
2 cryptocurrencies that could surpass Bitcoin
We look at 2 cryptocurrencies that could surpass Bitcoin after the innovations they have brought according to The Motley Fool
What Does TWR Mean? Formula, TWRR Example, and Use Cases
TWR meaning, TWR formula, and TWRR use cases to evaluate portfolio performance without cash-flow distortion.
The 15 greenest and most sustainable companies (2022)
Which are the best companies from the point of view of environmental awareness? We find out in this article
The richest people in Europe in 2022 according to Forbes
Who are the entrepreneurs with the highest wealth in Europe? We find out in this list compiled by Forbes
Elon Musk's investment strategy
Elon Musk, by many standards the most successful entrepreneur of modern times, had a net worth of about $220 billion as of June 2022. At the …
Beta in finance
Let's see how the beta coefficient is defined and try to understand how this technical investment risk index is used
Alpha in finance
Let's see how the alpha coefficient is defined and try to understand how this technical investment risk index is used
Money-Weighted Rate of Return
Let's see how the money-weighted rate of return is defined and how it can be used to assess one's return on investment portfolios, …
The impact of the war on European economic recovery
Let's see what the European economic scenario might be following Russia's war against Ukraine
Why do bond prices and yields move in opposite directions?
Let's look at the relationship between the price and yield of bonds and why they have opposite trends
What you should know about inflation
Let's take a closer look at the concept of inflation and why it is important to know it for one's investments
What is Corporate Social Responsibility (CSR)?
Corporate social responsibility explained in its main points
ESG Criteria
We explain what environmental, social and governance (ESG) criteria are
Actively managed funds
We explain what actively managed funds are and what the pros and cons are
DCA (Dollar Cost Averaging) on S&P 500 over the past 20 years
Dollar Cost Averaging (DCA) is a popular investment strategy that involves investing a fixed amount of money at regular intervals, …
Average Annual Return (AAR)
Let's see how Average Annual Return is defined and how to evaluate it for an investment portfolio
Investing in index funds for beginners
A guide on how to choose market indices through instruments such as ETFs and index funds
Passively managed funds
We explain what passively managed funds are and what the pros and cons are
What Ray Dalio of Bridgewater thinks about the market impact of the Russian invasion of Ukraine
The founder of the world's largest hedge fund has closely followed the Russian invasion of Ukraine and comments on the possible economic …
An investment portfolio comparing Inflation Linked Bonds and Ordinary Government Bonds
Let's compare how these two financial assets move in the financial market: an inflation-indexed bond ETF and an ordinary coupon ETF for the …
Maximum drawdown
We better understand how to interpret the maximum drawdown of an investment portfolio and use it to understand whether different assets meet …
Compound annual growth rate (CAGR)
Let's see how the compound annual growth rate is defined and how to calculate this value on your investment portfolio
What Is Sharpe Ratio? Meaning, Formula, and Good Value Ranges
What is Sharpe ratio, how to use the Sharpe formula, and what is considered a good Sharpe ratio for portfolio decisions.
Warren Buffet's story: how he started investing and where he got to today
A chronological history of the Oracle of Omaha: 1930-2021
Volatility
Let's see how volatility is defined and how to assess risk in an investment portfolio
Comparison of the top 5 commodities over the three-year period 2019-2022
Over the past three years, the world has witnessed a remarkable change in the commodities sector due to factors such as the COVID-19 …
Russian stock index performance over the past 20 years
This article goes on to examine the performance of the Russian MOEX index over the past two decades
Comparison of the 5 most capitalized companies by sector in the S&P500
In this article we go over the performance, performance of a $1,000 investment, correlation and other statistics of the top 5 capitalized …
Comparison of the 5 most capitalised companies in the FTSE MIB
In this article we examine the performance, correlation and other statistics of the top 5 capitalised companies in the FTSE MIB
Performance comparison of different asset classes
This article examines the performance of different asset classes over the past 10 years: equities, government bonds, corporate bonds, gold
