Author archives: Jin Won Choi

FRDM - The Better Way To Invest In Emerging Markets

Last update on Oct. 14, 2019.

Image Credit: Rawpixel.com / Shutterstock.com

 

Owning emerging market stocks could benefit your investment portfolio in two ways. First and more obvious, owning emerging market stocks would make your portfolio more diversified, thereby lowering risk. Second, emerging market economies tend to grow much more quickly than developed economies, so many people assume that emerging market stocks will outperform developed market stocks.

Unfortunately, that second assumption has not held up in recent years. The following chart shows the comparative performances of the Vanguard FTSE Emerging Markets ETF (VWO), and the SPDR S&P 500 ETF (SPY), in the ...

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Is Passive Investing A Bubble?

Last update on Sept. 16, 2019.

Image Credit: EtiAmmos / Shutterstock.com

 

Within each industry, there are certain topics that divide participants and make them battle each other with religious fervour. Among programmers, the topic might be Windows vs. *nix. Among physicists, I’ve heard of dissent against string theory.

There are several topics that similarly divide financial professionals. One such topic revolves around the issue of whether passive investing is harmful or beneficial to financial markets. Passive investing, in contrast to active investing, involves an attempt not to pick individual stocks. Instead, it diversifies as much as possible, owning every stock in an ...

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Can Yield Curves Predict Stock Market Direction? - A Machine Learning Perspective

Last update on Aug. 19, 2019.

Image Credit: dani3315 / Shutterstock.com

 

Many investors are concerned about the yield curve today. Generally speaking, a positive sloping yield curve (i.e. where long term interest rates are higher than short term rates) portends future economic health. By contrast, negative sloping yield curves (a.k.a. “inverted” curves) have tended to precede recessions.

Today, the yield curve is the most inverted it’s been since before the financial crisis. This has led some investors to wonder: should they sell stocks today to protect their portfolios? Or should they hold onto them because, despite widespread belief, yield ...

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Discontinuing MoneyGeek's Portfolios

Last update on Aug. 5, 2019.

Image Credit: William Potter / Shutterstock.com

 

On the first Monday of every month (like today), I normally give an update on MoneyGeek’s portfolios. But as you can tell from the title, today is different. Today, I’ve decided to remove the model portfolios feature from this website.

I know that many of you have been using my model portfolios to invest real money, so I feel that I owe you a full explanation. 

Early last year, I started work on a successor website to the model portfolios’ page. I called it ‘Portfolio Expo’, and it was ...

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Why Decision Trees Work Well For Investment Analysis

Last update on July 22, 2019.

Image Credit: Boo-Tique / Shutterstock.com

 

What is the best machine learning algorithm? The answer is, unsurprisingly, “it depends.” There are many different types of machine learning algorithms, each with their own unique way of modelling the real world in some fashion.

 

Tradeoffs on Model Complexity

The best algorithm is generally one that most closely mirrors the real world. Think of each machine learning algorithm as a set of lego boxes, each containing different shapes of bricks. If you’re going to build an airplane, you’re going to do better with lego boxes containing wing shaped ...

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It's Not Just Hype - Why Machine Learning Holds So Much Promise

Last update on July 8, 2019.

Image Credit: Grigorita Ko / Shutterstock.com

 

In the book “MoneyBall”, author Michael Lewis documented the story of the Oakland A’s baseball team. Despite their shoestring budget, the A’s consistently contended with teams with far bigger budgets, such as the New York Yankees. The secret of the team’s success boiled down to one thing - the use of statistics. Instead of relying on the subjective judgements of scouts, the A’s made rational decisions on player acquisitions using data.

Unfortunately, the story doesn’t have a good epilogue. Not long after the book’s publication in 2004, the team’s standing began ...

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Gold Moves Up - But Will It Continue To?

Last update on July 1, 2019.

Image Credit: photo BC / Shutterstock.com

At the beginning of every month, I brief members on how MoneyGeek's Regular portfolios have performed and comment on the state of the financial markets. In this update, I’ll also share my thoughts on gold.

 

June Performance of Regular Portfolios

The performance of MoneyGeek's Regular portfolios for the month of June 2019 were as follows:

 

Last Month

Last 12 Months

Since Apr 2013

Aggressive

+3.4%

-5.5%

+90.2%

Growth

+3.0%

-4.2%

+76.0%

Balanced

+2.6%

-3.2%

+62.2%

Conservative

+2.2%

-2.2 ...

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My TFSA Update May 2019 - The Final Article

Last update on June 17, 2019.

Image Credit: Fotokostic / Shutterstock.com

 

In this series, I (Jin Choi) talk about my journey of investing in my TFSA account. If you want to know what a TFSA is, I recommend you read my free book. In this update, I’ll explain why I’m discontinuing this series, and how the content of this website will change in the future.

 

May Results: Down 13.8%

At the end of May, I had $40,416 in my TFSA account, which is down by 13.8% since the end of last month. By comparison, the Canadian stock market ...

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Is A Recession Coming Soon?

Last update on June 3, 2019.

Image Credit: Jenson / Shutterstock.com

 

At the beginning of every month, I brief members on how MoneyGeek's Regular portfolios have performed and comment on the state of the financial markets. In this update, I’ll also talk about some economic indicators that point to a weakening global economy.

May Performance of Regular Portfolios

The performance of MoneyGeek's Regular portfolios for the month of May 2019 were as follows:

 

Last Month

Last 12 Months

Since Apr 2013

Aggressive

-8.9%

-7.9%

+84.0%

Growth

-7.8%

-6.4%

+70.9%

Balanced

-6.7%

-5.1%

+58 ...

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My TFSA Update April 2019

Last update on May 20, 2019.

Image Credit: Perfect Gui / Shutterstock.com

 

In this series, I (Jin Choi) talk about my journey of investing in my TFSA account. If you want to know what a TFSA is, I recommend you read my free book. In this update, I’ll give my thoughts on the current state of the Canadian oil and gas industry.

 

April Results: Up 12.3%

At the end of April, I had $46,898 in my TFSA account, which is up by 12.3% since the end of last month. By comparison, the Canadian stock market went up by ...

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