We will cover a lot in this course. It might come across a little bit overwhelming, but do not worry we will take our time in each topic to make sure it will sink in and before you know it you will be confidently picking your own ETFs, building an investment portfolio and trading.
We will start by building together a balance sheet of your own personal wealth. This is how you will learn how much you are worth and how that is changing over time.
We will then talk about why you should invest and how much of your personal wealth you should consider investing.
We will then talk about what you can invest your money in. And walk through each individual liquid asset class (including Nominal Bonds, Inflation-Linked Bonds, Equities/Stocks, REITs and Commodities) how it works, what is its role in a portfolio and what type of risks you incur in investing in it. I will show you how to research ETFs and what to look for when picking an ETF. As well as examples for each Asset Class.
From that we will move on to talk about risk, return and diversification. Why it is important to buy and hold investments, vs actively trading and why you should try to get exposure to an Asset Class through an Index fund instead of individual securities, for example stocks.
We will talk about the traditional way of Investing for Retail Investors, the 60/40 asset allocation model. We will build a simple version of that.
Next we’ll talk about another approach to investing, a more balanced one called risk parity. We will build a risk parity model portfolio together. We will build rebalancing logic, so that you can re-use this model over time with your own personal investments. We will trade together the ETFs, I will show you how to do that. We will talk about Leverage, what it is, why it can be good for your portfolio and how to use derivatives to achieve leverage. We will build together a Risk Parity portfolio that uses leverage through Stock Options. I will show you how to trade Stock Options to achieve leverage in your portfolio.
We will talk about Tax Implications of ETF investing and how to harvest tax losses at the end of year. Last we will enter the world of Cryptocurrencies. I will show you how I think about this new and exciting world, what could be their role in a balanced portfolio and how to farm yield with them.