Major Indices Investing Strategy

COURSE DESCRIPTION

This is an investing strategy that looks beyond borders and treats the world as one big global stock market, weighting investments by the GDP of each country. The beauty of this approach is that it inherently recognizes and capitalizes on the different economic dynamics at play in various regions of the world. It is an investment strategy that seeks growth opportunities wherever they may arise, providing you with a built-in diversification that’s so crucial in today’s interconnected world. We know the global economy is growing, it has been since the industrial revolution, we know populations and rising, we know people are getting richer and spending more, we know stock market indices reflect this by consistently rising over time. Instead of getting lost in the complexities and stress of choosing individual stocks, you’re choosing a much larger, more stable entity – The global economy!! This entity is statistically more likely to yield positive returns over the long term.

WHAT YOU WILL LEARN

This investing strategy is built using twenty index ETFs representing different stock markets around the world. There is the S&P500 and Russell indices in the US, FTSE in the UK, DAX in Germany and many more. You will learn about buying and structuring an ETF based investing strategy. Over time, research has consistently shown that index investing tends to perform better than most actively managed funds. This is primarily due to two factors. First, it’s the cost-effectiveness of ETFs. They are cheaper to operate as they require less management (they’re not trying to outsmart the market) and they have fewer transaction fees. Second, it’s the law of large numbers. By owning a piece of hundreds or even thousands of companies, you’re more likely to benefit from the overall growth trend of the market.

You will also see Passive Investing in action. The term “passive” might make it sound less impressive, but don’t be fooled. Passive investing is a time-proven, stress-free strategy that builds wealth over the long term. It avoids the perils and uncertainties of market timing and the high fees often associated with active trading. Instead of trying to beat the market, you ride along with it.

LEARNING OUTCOMES

To sum up, an investing strategy focused on the world’s major stock indices provides a global, diversified, and cost-effective method for growing your wealth. You don’t have to decipher the secrets of individual stocks or time the market. Instead, you’ll own a piece of the world’s largest companies, benefiting from the overall upward trend of global economic growth.

Think about it. Investing in global indices means investing in human innovation, resilience, and ambition, from Silicon Valley to Singapore. It means being part of the global narrative of economic growth, partaking in the benefits it brings.

Areas covered include:

Diversification, ETFs, Passive Investing, Stock Indices, Global Economies, Emerging Markets